Correlation Between Manitou BF and Stellantis
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Stellantis 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 Stellantis 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 Stellantis NV, you can compare the effects of market volatilities on Manitou BF and Stellantis 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 Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Stellantis.
Diversification Opportunities for Manitou BF and Stellantis
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Stellantis is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV 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 Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Manitou BF i.e., Manitou BF and Stellantis go up and down completely randomly.
Pair Corralation between Manitou BF and Stellantis
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Stellantis. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.01 times less risky than Stellantis. The stock trades about -0.19 of its potential returns per unit of risk. The Stellantis NV is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,240 in Stellantis NV on August 30, 2024 and sell it today you would lose (27.00) from holding Stellantis NV or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Manitou BF SA vs. Stellantis NV
Performance |
| Timeline |
| Manitou BF SA |
| Stellantis NV |
Manitou BF and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Stellantis
The main advantage of trading using opposite Manitou BF and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Stellantis vs. LVMH Mot Hennessy | Stellantis vs. LOreal SA | Stellantis vs. Hermes International SCA | Stellantis vs. Manitou BF SA |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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