Correlation Between SSgA SPDR and Manitou BF
Can any of the company-specific risk be diversified away by investing in both SSgA SPDR 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 SSgA SPDR and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSgA SPDR ETFs and Manitou BF SA, you can compare the effects of market volatilities on SSgA SPDR 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 SSgA SPDR with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSgA SPDR and Manitou BF.
Diversification Opportunities for SSgA SPDR and Manitou BF
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SSgA and Manitou is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding SSgA SPDR ETFs 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 SSgA SPDR 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 SSgA SPDR ETFs 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 SSgA SPDR i.e., SSgA SPDR and Manitou BF go up and down completely randomly.
Pair Corralation between SSgA SPDR and Manitou BF
Assuming the 90 days trading horizon SSgA SPDR ETFs is expected to generate 0.28 times more return on investment than Manitou BF. However, SSgA SPDR ETFs is 3.52 times less risky than Manitou BF. It trades about 0.03 of its potential returns per unit of risk. Manitou BF SA is currently generating about -0.1 per unit of risk. If you would invest 20,770 in SSgA SPDR ETFs on September 3, 2024 and sell it today you would earn a total of 670.00 from holding SSgA SPDR ETFs or generate 3.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSgA SPDR ETFs vs. Manitou BF SA
Performance |
| Timeline |
| SSgA SPDR ETFs |
| Manitou BF SA |
SSgA SPDR and Manitou BF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSgA SPDR and Manitou BF
The main advantage of trading using opposite SSgA SPDR and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSgA SPDR 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.| SSgA SPDR vs. Amundi Index Solutions | SSgA SPDR vs. Amundi Index Solutions | SSgA SPDR vs. Manitou BF SA | SSgA SPDR vs. Ossiam Minimum Variance |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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