Correlation Between Feintool International and Adval Tech
Can any of the company-specific risk be diversified away by investing in both Feintool International and Adval Tech 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 Feintool International and Adval Tech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Feintool International Holding and Adval Tech Holding, you can compare the effects of market volatilities on Feintool International and Adval Tech 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 Feintool International with a short position of Adval Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Adval Tech.
Diversification Opportunities for Feintool International and Adval Tech
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feintool and Adval is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Adval Tech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adval Tech Holding and Feintool International 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 Feintool International Holding are associated (or correlated) with Adval Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adval Tech Holding has no effect on the direction of Feintool International i.e., Feintool International and Adval Tech go up and down completely randomly.
Pair Corralation between Feintool International and Adval Tech
Assuming the 90 days trading horizon Feintool International Holding is expected to generate 0.68 times more return on investment than Adval Tech. However, Feintool International Holding is 1.46 times less risky than Adval Tech. It trades about -0.04 of its potential returns per unit of risk. Adval Tech Holding is currently generating about -0.06 per unit of risk. If you would invest 2,325 in Feintool International Holding on November 5, 2024 and sell it today you would lose (885.00) from holding Feintool International Holding or give up 38.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 69.25% |
| Values | Daily Returns |
Feintool International Holding vs. Adval Tech Holding
Performance |
| Timeline |
| Feintool International |
| Adval Tech Holding |
Feintool International and Adval Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Adval Tech
The main advantage of trading using opposite Feintool International and Adval Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Adval Tech 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 Adval Tech will offset losses from the drop in Adval Tech's long position.| Feintool International vs. Rieter Holding AG | Feintool International vs. Autoneum Holding AG | Feintool International vs. Bucher Industries AG | Feintool International vs. Komax Holding AG |
| Adval Tech vs. Feintool International Holding | Adval Tech vs. Also Holding AG | Adval Tech vs. Allreal Holding | Adval Tech vs. Forbo 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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