Correlation Between Feintool International and Private Equity
Can any of the company-specific risk be diversified away by investing in both Feintool International and Private Equity 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 Private Equity 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 Private Equity Holding, you can compare the effects of market volatilities on Feintool International and Private Equity 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 Private Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Private Equity.
Diversification Opportunities for Feintool International and Private Equity
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Feintool and Private is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Private Equity Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Private Equity 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 Private Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Private Equity Holding has no effect on the direction of Feintool International i.e., Feintool International and Private Equity go up and down completely randomly.
Pair Corralation between Feintool International and Private Equity
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Private Equity. In addition to that, Feintool International is 1.05 times more volatile than Private Equity Holding. It trades about -0.04 of its total potential returns per unit of risk. Private Equity Holding is currently generating about 0.01 per unit of volatility. If you would invest 6,772 in Private Equity Holding on September 1, 2024 and sell it today you would earn a total of 188.00 from holding Private Equity Holding or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 91.42% |
| Values | Daily Returns |
Feintool International Holding vs. Private Equity Holding
Performance |
| Timeline |
| Feintool International |
| Private Equity Holding |
Feintool International and Private Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Private Equity
The main advantage of trading using opposite Feintool International and Private Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Private Equity 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 Private Equity will offset losses from the drop in Private Equity's long position.| Feintool International vs. OC Oerlikon Corp | Feintool International vs. Helvetia Holding AG | Feintool International vs. Swiss Life Holding | Feintool International vs. VAT Group AG |
| Private Equity vs. HIAG Immobilien Holding | Private Equity vs. Bellevue Group AG | Private Equity vs. Feintool International Holding | Private Equity vs. Procimmo Real Estate |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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