Correlation Between Manitou BF and SSgA SPDR
Can any of the company-specific risk be diversified away by investing in both Manitou BF and SSgA SPDR 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 SSgA SPDR 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 SSgA SPDR ETFs, you can compare the effects of market volatilities on Manitou BF and SSgA SPDR 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 SSgA SPDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and SSgA SPDR.
Diversification Opportunities for Manitou BF and SSgA SPDR
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and SSgA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and SSgA SPDR ETFs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSgA SPDR ETFs 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 SSgA SPDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSgA SPDR ETFs has no effect on the direction of Manitou BF i.e., Manitou BF and SSgA SPDR go up and down completely randomly.
Pair Corralation between Manitou BF and SSgA SPDR
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the SSgA SPDR. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.04 times less risky than SSgA SPDR. The stock trades about -0.23 of its potential returns per unit of risk. The SSgA SPDR ETFs is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 5,865 in SSgA SPDR ETFs on September 1, 2024 and sell it today you would earn a total of 780.00 from holding SSgA SPDR ETFs or generate 13.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. SSgA SPDR ETFs
Performance |
| Timeline |
| Manitou BF SA |
| SSgA SPDR ETFs |
Manitou BF and SSgA SPDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and SSgA SPDR
The main advantage of trading using opposite Manitou BF and SSgA SPDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, SSgA SPDR 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 SSgA SPDR will offset losses from the drop in SSgA SPDR's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| SSgA SPDR vs. Multi Units France | SSgA SPDR vs. Lyxor MSCI China | SSgA SPDR vs. Manitou BF SA | SSgA SPDR vs. Ossiam Minimum Variance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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