Correlation Between Manitou BF and MULTI UNITS
Can any of the company-specific risk be diversified away by investing in both Manitou BF and MULTI UNITS 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 MULTI UNITS 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 MULTI UNITS LUXEMBOURG, you can compare the effects of market volatilities on Manitou BF and MULTI UNITS 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 MULTI UNITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and MULTI UNITS.
Diversification Opportunities for Manitou BF and MULTI UNITS
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Manitou and MULTI is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and MULTI UNITS LUXEMBOURG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MULTI UNITS LUXEMBOURG 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 MULTI UNITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MULTI UNITS LUXEMBOURG has no effect on the direction of Manitou BF i.e., Manitou BF and MULTI UNITS go up and down completely randomly.
Pair Corralation between Manitou BF and MULTI UNITS
Assuming the 90 days trading horizon Manitou BF SA is expected to under-perform the MULTI UNITS. But the stock apears to be less risky and, when comparing its historical volatility, Manitou BF SA is 1.22 times less risky than MULTI UNITS. The stock trades about -0.23 of its potential returns per unit of risk. The MULTI UNITS LUXEMBOURG is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 4,123 in MULTI UNITS LUXEMBOURG on September 1, 2024 and sell it today you would earn a total of 548.00 from holding MULTI UNITS LUXEMBOURG or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Manitou BF SA vs. MULTI UNITS LUXEMBOURG
Performance |
| Timeline |
| Manitou BF SA |
| MULTI UNITS LUXEMBOURG |
Manitou BF and MULTI UNITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and MULTI UNITS
The main advantage of trading using opposite Manitou BF and MULTI UNITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, MULTI UNITS 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 MULTI UNITS will offset losses from the drop in MULTI UNITS's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| MULTI UNITS vs. Multi Units France | MULTI UNITS vs. Lyxor MSCI China | MULTI UNITS vs. Manitou BF SA | MULTI UNITS 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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