Correlation Between Speed Rabbit and Manitou BF

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

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

Diversification Opportunities for Speed Rabbit and Manitou BF

0.0

Correlation Coefficient

Speed Rabbit  Manitou BF

Pay attention - limited upside

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

Pair Corralation between Speed Rabbit and Manitou BF

If you would invest  1,618  in Manitou BF SA on December 21, 2024 and sell it today you would earn a total of  278.00  from holding Manitou BF SA or generate 17.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Speed Rabbit Pizza  vs.  Manitou BF SA

Speed Rabbit Pizza

Risk-Adjusted Performance

Insignificant

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

Manitou BF SA

Risk-Adjusted Performance

OK

Over the last 90 days Manitou BF SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Manitou BF sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Speed Rabbit and Manitou BF

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

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.