Correlation Between Bossard Holding and Feintool International
Can any of the company-specific risk be diversified away by investing in both Bossard Holding and Feintool International 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 Bossard Holding and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bossard Holding AG and Feintool International Holding, you can compare the effects of market volatilities on Bossard Holding and Feintool International 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 Bossard Holding with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bossard Holding and Feintool International.
Diversification Opportunities for Bossard Holding and Feintool International
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bossard and Feintool is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Bossard Holding AG and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and Bossard Holding 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 Bossard Holding AG are associated (or correlated) with Feintool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feintool International has no effect on the direction of Bossard Holding i.e., Bossard Holding and Feintool International go up and down completely randomly.
Pair Corralation between Bossard Holding and Feintool International
Assuming the 90 days trading horizon Bossard Holding AG is expected to under-perform the Feintool International. But the stock apears to be less risky and, when comparing its historical volatility, Bossard Holding AG is 2.02 times less risky than Feintool International. The stock trades about -0.24 of its potential returns per unit of risk. The Feintool International Holding is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,620 in Feintool International Holding on August 31, 2024 and sell it today you would lose (65.00) from holding Feintool International Holding or give up 4.01% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bossard Holding AG vs. Feintool International Holding
Performance |
| Timeline |
| Bossard Holding AG |
| Feintool International |
Bossard Holding and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bossard Holding and Feintool International
The main advantage of trading using opposite Bossard Holding and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bossard Holding position performs unexpectedly, Feintool International 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 Feintool International will offset losses from the drop in Feintool International's long position.| Bossard Holding vs. VAT Group AG | Bossard Holding vs. Bucher Industries AG | Bossard Holding vs. EMS CHEMIE HOLDING AG | Bossard Holding vs. Komax Holding AG |
| Feintool International vs. Rieter Holding AG | Feintool International vs. Autoneum Holding AG | Feintool International vs. Bucher Industries AG | Feintool International vs. Komax Holding AG |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |