Correlation Between Feintool International and Komax Holding
Can any of the company-specific risk be diversified away by investing in both Feintool International and Komax Holding 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 Komax Holding 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 Komax Holding AG, you can compare the effects of market volatilities on Feintool International and Komax Holding 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 Komax Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Komax Holding.
Diversification Opportunities for Feintool International and Komax Holding
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Feintool and Komax is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Komax Holding AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Komax Holding 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 Komax Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Komax Holding AG has no effect on the direction of Feintool International i.e., Feintool International and Komax Holding go up and down completely randomly.
Pair Corralation between Feintool International and Komax Holding
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Komax Holding. In addition to that, Feintool International is 1.13 times more volatile than Komax Holding AG. It trades about -0.23 of its total potential returns per unit of risk. Komax Holding AG is currently generating about -0.09 per unit of volatility. If you would invest 11,460 in Komax Holding AG on August 29, 2024 and sell it today you would lose (420.00) from holding Komax Holding AG or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Feintool International Holding vs. Komax Holding AG
Performance |
| Timeline |
| Feintool International |
| Komax Holding AG |
Feintool International and Komax Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Komax Holding
The main advantage of trading using opposite Feintool International and Komax Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Komax Holding 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 Komax Holding will offset losses from the drop in Komax Holding'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 |
| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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