Correlation Between Manitou BF and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lyxor UCITS 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 Lyxor UCITS 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 Lyxor UCITS iBoxx, you can compare the effects of market volatilities on Manitou BF and Lyxor UCITS 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 Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lyxor UCITS.
Diversification Opportunities for Manitou BF and Lyxor UCITS
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Manitou and Lyxor is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor UCITS iBoxx in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS iBoxx 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 Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS iBoxx has no effect on the direction of Manitou BF i.e., Manitou BF and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Manitou BF and Lyxor UCITS
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 5.74 times more return on investment than Lyxor UCITS. However, Manitou BF is 5.74 times more volatile than Lyxor UCITS iBoxx. It trades about 0.22 of its potential returns per unit of risk. Lyxor UCITS iBoxx is currently generating about 0.06 per unit of risk. If you would invest 2,040 in Manitou BF SA on November 28, 2024 and sell it today you would earn a total of 255.00 from holding Manitou BF SA or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Manitou BF SA vs. Lyxor UCITS iBoxx
Performance |
| Timeline |
| Manitou BF SA |
| Lyxor UCITS iBoxx |
Manitou BF and Lyxor UCITS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Manitou BF and Lyxor UCITS
The main advantage of trading using opposite Manitou BF and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
| Lyxor UCITS vs. Lyxor SP 500 | Lyxor UCITS vs. Lyxor UCITS Daily | Lyxor UCITS vs. Lyxor UCITS MSCI | Lyxor UCITS vs. Lyxor Treasury 10Y |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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