Correlation Between Multi Units and Manitou BF
Can any of the company-specific risk be diversified away by investing in both Multi Units 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 Multi Units and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Multi Units Luxembourg and Manitou BF SA, you can compare the effects of market volatilities on Multi Units 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 Multi Units with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Units and Manitou BF.
Diversification Opportunities for Multi Units and Manitou BF
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Multi and Manitou is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Multi Units Luxembourg 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 Multi Units 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 Multi Units Luxembourg 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 Multi Units i.e., Multi Units and Manitou BF go up and down completely randomly.
Pair Corralation between Multi Units and Manitou BF
Assuming the 90 days trading horizon Multi Units Luxembourg is expected to generate 0.58 times more return on investment than Manitou BF. However, Multi Units Luxembourg is 1.72 times less risky than Manitou BF. It trades about 0.32 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.18 per unit of risk. If you would invest 5,484 in Multi Units Luxembourg on September 2, 2024 and sell it today you would earn a total of 432.00 from holding Multi Units Luxembourg or generate 7.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Multi Units Luxembourg vs. Manitou BF SA
Performance |
| Timeline |
| Multi Units Luxembourg |
| Manitou BF SA |
Multi Units and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Multi Units and Manitou BF
The main advantage of trading using opposite Multi Units and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Multi Units 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.| Multi Units vs. Lyxor MSCI China | Multi Units vs. Manitou BF SA | Multi Units vs. Granite 3x LVMH | Multi Units vs. 21Shares Polkadot ETP |
| Manitou BF vs. Air Liquide SA | Manitou BF vs. Vinci SA | Manitou BF vs. LOreal SA | Manitou BF vs. Compagnie de Saint Gobain |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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