Correlation Between Manitou BF and Tonnellerie Francois
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Tonnellerie Francois 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 Tonnellerie Francois 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 Tonnellerie Francois Freres, you can compare the effects of market volatilities on Manitou BF and Tonnellerie Francois 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 Tonnellerie Francois. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Tonnellerie Francois.
Diversification Opportunities for Manitou BF and Tonnellerie Francois
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Manitou and Tonnellerie is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Tonnellerie Francois Freres in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tonnellerie Francois 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 Tonnellerie Francois. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tonnellerie Francois has no effect on the direction of Manitou BF i.e., Manitou BF and Tonnellerie Francois go up and down completely randomly.
Pair Corralation between Manitou BF and Tonnellerie Francois
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the Tonnellerie Francois. In addition to that, Manitou BF is 1.18 times more volatile than Tonnellerie Francois Freres. It trades about -0.17 of its total potential returns per unit of risk. Tonnellerie Francois Freres is currently generating about -0.14 per unit of volatility. If you would invest 4,182 in Tonnellerie Francois Freres on September 1, 2024 and sell it today you would lose (1,282) from holding Tonnellerie Francois Freres or give up 30.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.24% |
| Values | Daily Returns |
Manitou BF SA vs. Tonnellerie Francois Freres
Performance |
| Timeline |
| Manitou BF SA |
| Tonnellerie Francois |
Manitou BF and Tonnellerie Francois Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Tonnellerie Francois
The main advantage of trading using opposite Manitou BF and Tonnellerie Francois positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Tonnellerie Francois 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 Tonnellerie Francois will offset losses from the drop in Tonnellerie Francois' long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Tonnellerie Francois vs. Voltalia SA | Tonnellerie Francois vs. Ecoslops SA | Tonnellerie Francois vs. Agripower France Sa | Tonnellerie Francois vs. Enertime SAS |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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