Correlation Between Haulotte Group and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Haulotte Group 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 Haulotte Group and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haulotte Group SA and Manitou BF SA, you can compare the effects of market volatilities on Haulotte Group 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 Haulotte Group with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haulotte Group and Manitou BF.
Diversification Opportunities for Haulotte Group and Manitou BF
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Haulotte and Manitou is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Haulotte Group 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 Haulotte Group 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 Haulotte Group 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 Haulotte Group i.e., Haulotte Group and Manitou BF go up and down completely randomly.
Pair Corralation between Haulotte Group and Manitou BF
Assuming the 90 days trading horizon Haulotte Group is expected to generate 3.06 times less return on investment than Manitou BF. But when comparing it to its historical volatility, Haulotte Group SA is 2.16 times less risky than Manitou BF. It trades about 0.34 of its potential returns per unit of risk. Manitou BF SA is currently generating about 0.48 of returns per unit of risk over similar time horizon. If you would invest 1,624 in Manitou BF SA on October 25, 2024 and sell it today you would earn a total of 366.00 from holding Manitou BF SA or generate 22.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haulotte Group SA vs. Manitou BF SA
Performance |
| Timeline |
| Haulotte Group SA |
| Manitou BF SA |
Haulotte Group and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haulotte Group and Manitou BF
The main advantage of trading using opposite Haulotte Group and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haulotte Group 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.| Haulotte Group vs. Manitou BF SA | Haulotte Group vs. NRJ Group | Haulotte Group vs. Etablissements Maurel et | Haulotte Group vs. Trigano 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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