Correlation Between Feintool International and Hubersuhner
Can any of the company-specific risk be diversified away by investing in both Feintool International and Hubersuhner 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 Hubersuhner 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 Hubersuhner AG, you can compare the effects of market volatilities on Feintool International and Hubersuhner 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 Hubersuhner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Hubersuhner.
Diversification Opportunities for Feintool International and Hubersuhner
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Feintool and Hubersuhner is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Hubersuhner AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubersuhner AG 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 Hubersuhner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubersuhner AG has no effect on the direction of Feintool International i.e., Feintool International and Hubersuhner go up and down completely randomly.
Pair Corralation between Feintool International and Hubersuhner
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Hubersuhner. In addition to that, Feintool International is 2.24 times more volatile than Hubersuhner AG. It trades about -0.05 of its total potential returns per unit of risk. Hubersuhner AG is currently generating about -0.1 per unit of volatility. If you would invest 8,610 in Hubersuhner AG on November 2, 2024 and sell it today you would lose (920.00) from holding Hubersuhner AG or give up 10.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.03% |
| Values | Daily Returns |
Feintool International Holding vs. Hubersuhner AG
Performance |
| Timeline |
| Feintool International |
| Hubersuhner AG |
Feintool International and Hubersuhner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Hubersuhner
The main advantage of trading using opposite Feintool International and Hubersuhner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Hubersuhner 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 Hubersuhner will offset losses from the drop in Hubersuhner's long position.| Feintool International vs. Geberit AG | Feintool International vs. Givaudan SA | Feintool International vs. SGS SA | Feintool International vs. Sika AG |
| Hubersuhner vs. Bucher Industries AG | Hubersuhner vs. Komax Holding AG | Hubersuhner vs. Comet Holding AG | Hubersuhner vs. Burckhardt Compression |
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 Stocks Directory module to find actively traded stocks across global markets.
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