Correlation Between Manitou BF and Lyxor UCITS
Can any of the company-specific risk be diversified away by investing in both Manitou BF and Lyxor UCITS 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 Manitou BF and Lyxor UCITS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Manitou BF SA and Lyxor UCITS EuroMTS, you can compare the effects of market volatilities on Manitou BF and Lyxor UCITS 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 Manitou BF with a short position of Lyxor UCITS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Manitou BF and Lyxor UCITS.
Diversification Opportunities for Manitou BF and Lyxor UCITS
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Manitou and Lyxor is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Manitou BF SA and Lyxor UCITS EuroMTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyxor UCITS EuroMTS and Manitou BF 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 Manitou BF SA are associated (or correlated) with Lyxor UCITS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyxor UCITS EuroMTS has no effect on the direction of Manitou BF i.e., Manitou BF and Lyxor UCITS go up and down completely randomly.
Pair Corralation between Manitou BF and Lyxor UCITS
Assuming the 90 days trading horizon Manitou BF SA is expected to generate 10.53 times more return on investment than Lyxor UCITS. However, Manitou BF is 10.53 times more volatile than Lyxor UCITS EuroMTS. It trades about 0.05 of its potential returns per unit of risk. Lyxor UCITS EuroMTS is currently generating about -0.47 per unit of risk. If you would invest 1,724 in Manitou BF SA on October 11, 2024 and sell it today you would earn a total of 34.00 from holding Manitou BF SA or generate 1.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 95.0% |
Values | Daily Returns |
Manitou BF SA vs. Lyxor UCITS EuroMTS
Performance |
Timeline |
Manitou BF SA |
Lyxor UCITS EuroMTS |
Manitou BF and Lyxor UCITS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Manitou BF and Lyxor UCITS
The main advantage of trading using opposite Manitou BF and Lyxor UCITS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Manitou BF position performs unexpectedly, Lyxor UCITS 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 Lyxor UCITS will offset losses from the drop in Lyxor UCITS's long position.Manitou BF vs. Haulotte Group SA | Manitou BF vs. Trigano SA | Manitou BF vs. Bnteau SA | Manitou BF vs. Derichebourg |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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