Correlation Between Man Infraconstructio and BF Utilities

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

By analyzing existing cross correlation between Man Infraconstruction Limited and BF Utilities Limited, you can compare the effects of market volatilities on Man Infraconstructio and BF Utilities 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 Man Infraconstructio with a short position of BF Utilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Man Infraconstructio and BF Utilities.

Diversification Opportunities for Man Infraconstructio and BF Utilities

0.82

Correlation Coefficient

Man Infraconstructio  BF Utilities

Very poor diversification

The 3 months correlation between Man and BFUTILITIE is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Man Infraconstruction Limited and BF Utilities Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BF Utilities Limited and Man Infraconstructio 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 Man Infraconstruction Limited are associated (or correlated) with BF Utilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BF Utilities Limited has no effect on the direction of Man Infraconstructio i.e., Man Infraconstructio and BF Utilities go up and down completely randomly.

Pair Corralation between Man Infraconstructio and BF Utilities

Assuming the 90 days trading horizon Man Infraconstruction Limited is expected to generate 1.07 times more return on investment than BF Utilities. However, Man Infraconstructio is 1.07 times more volatile than BF Utilities Limited. It trades about 0.06 of its potential returns per unit of risk. BF Utilities Limited is currently generating about 0.04 per unit of risk. If you would invest  16,572  in Man Infraconstruction Limited on April 24, 2025 and sell it today you would earn a total of  1,235  from holding Man Infraconstruction Limited or generate 7.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Man Infraconstruction Limited  vs.  BF Utilities Limited

Man Infraconstruction

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Man Infraconstruction Limited are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal technical and fundamental indicators, Man Infraconstructio may actually be approaching a critical reversion point that can send shares even higher in August 2025.

BF Utilities Limited

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BF Utilities Limited are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, BF Utilities is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Man Infraconstructio and BF Utilities

The main advantage of trading using opposite Man Infraconstructio and BF Utilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Man Infraconstructio position performs unexpectedly, BF Utilities 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 BF Utilities will offset losses from the drop in BF Utilities' long position.

The idea behind Man Infraconstruction Limited and BF Utilities Limited 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.