Correlation Between Manitou BF and Invesco Markets
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Invesco Markets at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Manitou BF and Invesco Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitou BF SA and Invesco Markets III, you can compare the effects of market volatilities on Manitou BF and Invesco Markets and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Manitou BF with a short position of Invesco Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Invesco Markets.
Diversification Opportunities for Manitou BF and Invesco Markets
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Invesco is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Invesco Markets III in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Markets III and Manitou BF is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Manitou BF SA are associated (or correlated) with Invesco Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Markets III has no effect on the direction of Manitou BF i.e., Manitou BF and Invesco Markets go up and down completely randomly.
Pair Corralation between Manitou BF and Invesco Markets
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Invesco Markets. In addition to that, Manitou BF is 2.94 times more volatile than Invesco Markets III. It trades about -0.17 of its total potential returns per unit of risk. Invesco Markets III is currently generating about -0.03 per unit of volatility. If you would invest 1,237 in Invesco Markets III on September 1, 2024 and sell it today you would lose (42.00) from holding Invesco Markets III or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Manitou BF SA vs. Invesco Markets III
Performance |
| Timeline |
| Manitou BF SA |
| Invesco Markets III |
Manitou BF and Invesco Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Invesco Markets
The main advantage of trading using opposite Manitou BF and Invesco Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Invesco Markets can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Invesco Markets will offset losses from the drop in Invesco Markets' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Invesco Markets vs. Lyxor MSCI China | Invesco Markets vs. Manitou BF SA | Invesco Markets vs. Ossiam Minimum Variance | Invesco Markets vs. Granite 3x LVMH |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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