Correlation Between Manitou BF and Foncire Volta
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Foncire Volta 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 Foncire Volta 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 Foncire Volta, you can compare the effects of market volatilities on Manitou BF and Foncire Volta 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 Foncire Volta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Foncire Volta.
Diversification Opportunities for Manitou BF and Foncire Volta
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitou and Foncire is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Foncire Volta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foncire Volta 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 Foncire Volta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foncire Volta has no effect on the direction of Manitou BF i.e., Manitou BF and Foncire Volta go up and down completely randomly.
Pair Corralation between Manitou BF and Foncire Volta
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Foncire Volta. In addition to that, Manitou BF is 3.08 times more volatile than Foncire Volta. It trades about -0.2 of its total potential returns per unit of risk. Foncire Volta is currently generating about 0.1 per unit of volatility. If you would invest 730.00 in Foncire Volta on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Foncire Volta or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Foncire Volta
Performance |
| Timeline |
| Manitou BF SA |
| Foncire Volta |
Manitou BF and Foncire Volta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Foncire Volta
The main advantage of trading using opposite Manitou BF and Foncire Volta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Foncire Volta 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 Foncire Volta will offset losses from the drop in Foncire Volta's long position.| Manitou BF vs. Publicis Groupe SA | Manitou BF vs. Pernod Ricard SA | Manitou BF vs. Compagnie Generale des | Manitou BF vs. Compagnie de Saint Gobain |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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