Correlation Between Feintool International and Procimmo Real
Can any of the company-specific risk be diversified away by investing in both Feintool International and Procimmo Real 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 Procimmo Real 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 Procimmo Real Estate, you can compare the effects of market volatilities on Feintool International and Procimmo Real 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 Procimmo Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and Procimmo Real.
Diversification Opportunities for Feintool International and Procimmo Real
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Feintool and Procimmo is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Procimmo Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procimmo Real Estate 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 Procimmo Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procimmo Real Estate has no effect on the direction of Feintool International i.e., Feintool International and Procimmo Real go up and down completely randomly.
Pair Corralation between Feintool International and Procimmo Real
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Procimmo Real. In addition to that, Feintool International is 3.41 times more volatile than Procimmo Real Estate. It trades about -0.07 of its total potential returns per unit of risk. Procimmo Real Estate is currently generating about 0.12 per unit of volatility. If you would invest 15,200 in Procimmo Real Estate on September 1, 2024 and sell it today you would earn a total of 250.00 from holding Procimmo Real Estate or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Feintool International Holding vs. Procimmo Real Estate
Performance |
| Timeline |
| Feintool International |
| Procimmo Real Estate |
Feintool International and Procimmo Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and Procimmo Real
The main advantage of trading using opposite Feintool International and Procimmo Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Procimmo Real 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 Procimmo Real will offset losses from the drop in Procimmo Real'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 |
| Procimmo Real vs. SF Sustainable Property | Procimmo Real vs. Swissinvest Real Estate | Procimmo Real vs. Baloise Swiss Property | Procimmo Real vs. CS 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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