Correlation Between Feintool International and Invesco EQQQ
Can any of the company-specific risk be diversified away by investing in both Feintool International and Invesco EQQQ 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 Invesco EQQQ 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 Invesco EQQQ NASDAQ 100, you can compare the effects of market volatilities on Feintool International and Invesco EQQQ 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 Invesco EQQQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Invesco EQQQ.
Diversification Opportunities for Feintool International and Invesco EQQQ
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Feintool and Invesco is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Invesco EQQQ NASDAQ 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco EQQQ NASDAQ 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 Invesco EQQQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco EQQQ NASDAQ has no effect on the direction of Feintool International i.e., Feintool International and Invesco EQQQ go up and down completely randomly.
Pair Corralation between Feintool International and Invesco EQQQ
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Invesco EQQQ. In addition to that, Feintool International is 1.66 times more volatile than Invesco EQQQ NASDAQ 100. It trades about -0.02 of its total potential returns per unit of risk. Invesco EQQQ NASDAQ 100 is currently generating about 0.12 per unit of volatility. If you would invest 19,208 in Invesco EQQQ NASDAQ 100 on September 3, 2024 and sell it today you would earn a total of 16,412 from holding Invesco EQQQ NASDAQ 100 or generate 85.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.58% |
| Values | Daily Returns |
Feintool International Holding vs. Invesco EQQQ NASDAQ 100
Performance |
| Timeline |
| Feintool International |
| Invesco EQQQ NASDAQ |
Feintool International and Invesco EQQQ Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Invesco EQQQ
The main advantage of trading using opposite Feintool International and Invesco EQQQ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Invesco EQQQ 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 Invesco EQQQ will offset losses from the drop in Invesco EQQQ'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 |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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