Correlation Between Neoen SA and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Neoen SA and Manitou BF 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 Neoen SA and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Neoen SA and Manitou BF SA, you can compare the effects of market volatilities on Neoen SA and Manitou BF 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 Neoen SA with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Neoen SA and Manitou BF.
Diversification Opportunities for Neoen SA and Manitou BF
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Neoen and Manitou is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Neoen SA and Manitou BF SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Manitou BF SA and Neoen SA 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 Neoen SA are associated (or correlated) with Manitou BF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Manitou BF SA has no effect on the direction of Neoen SA i.e., Neoen SA and Manitou BF go up and down completely randomly.
Pair Corralation between Neoen SA and Manitou BF
Assuming the 90 days trading horizon Neoen SA is expected to generate 0.94 times more return on investment than Manitou BF. However, Neoen SA is 1.07 times less risky than Manitou BF. It trades about 0.02 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.02 per unit of risk. If you would invest 3,404 in Neoen SA on August 30, 2024 and sell it today you would earn a total of 545.00 from holding Neoen SA or generate 16.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Neoen SA vs. Manitou BF SA
Performance |
| Timeline |
| Neoen SA |
| Manitou BF SA |
Neoen SA and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Neoen SA and Manitou BF
The main advantage of trading using opposite Neoen SA and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Neoen SA position performs unexpectedly, Manitou BF 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 Manitou BF will offset losses from the drop in Manitou BF's long position.| Neoen SA vs. Vinci SA | Neoen SA vs. Compagnie de Saint Gobain | Neoen SA vs. Bouygues SA | Neoen SA vs. Engie SA |
| Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |