Correlation Between Manitou BF and Samse SA
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Samse SA 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 Samse SA 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 Samse SA, you can compare the effects of market volatilities on Manitou BF and Samse SA 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 Samse SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Samse SA.
Diversification Opportunities for Manitou BF and Samse SA
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Manitou and Samse is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Samse SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samse SA 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 Samse SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samse SA has no effect on the direction of Manitou BF i.e., Manitou BF and Samse SA go up and down completely randomly.
Pair Corralation between Manitou BF and Samse SA
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Samse SA. In addition to that, Manitou BF is 1.98 times more volatile than Samse SA. It trades about -0.13 of its total potential returns per unit of risk. Samse SA is currently generating about -0.18 per unit of volatility. If you would invest 15,000 in Samse SA on August 28, 2024 and sell it today you would lose (550.00) from holding Samse SA or give up 3.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Samse SA
Performance |
| Timeline |
| Manitou BF SA |
| Samse SA |
Manitou BF and Samse SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Samse SA
The main advantage of trading using opposite Manitou BF and Samse SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Samse SA 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 Samse SA will offset losses from the drop in Samse SA's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |