Correlation Between AST Groupe and Manitou BF

Can any of the company-specific risk be diversified away by investing in both AST Groupe 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 AST Groupe and Manitou BF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between AST Groupe and Manitou BF SA, you can compare the effects of market volatilities on AST Groupe 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 AST Groupe with a short position of Manitou BF. Check out your portfolio center. Please also check ongoing floating volatility patterns of AST Groupe and Manitou BF.

Diversification Opportunities for AST Groupe and Manitou BF

0.0

Correlation Coefficient

AST Groupe  Manitou BF

Pay attention - limited upside

The 3 months correlation between AST and Manitou is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AST Groupe 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 AST Groupe 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 AST Groupe 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 AST Groupe i.e., AST Groupe and Manitou BF go up and down completely randomly.

Pair Corralation between AST Groupe and Manitou BF

Assuming the 90 days trading horizon AST Groupe is expected to under-perform the Manitou BF. In addition to that, AST Groupe is 2.68 times more volatile than Manitou BF SA. It trades about -0.04 of its total potential returns per unit of risk. Manitou BF SA is currently generating about -0.02 per unit of volatility. If you would invest  2,490  in Manitou BF SA on October 12, 2024 and sell it today you would lose (728.00) from holding Manitou BF SA or give up 29.24% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

AST Groupe  vs.  Manitou BF SA

AST Groupe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days AST Groupe has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, AST Groupe is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Manitou BF SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Manitou BF SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Manitou BF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with AST Groupe and Manitou BF

The main advantage of trading using opposite AST Groupe and Manitou BF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AST Groupe 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.

The idea behind AST Groupe and Manitou BF SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Directory module to find actively traded commodities issued by global exchanges.