Correlation Between Feintool International and IShares Global
Can any of the company-specific risk be diversified away by investing in both Feintool International and IShares Global 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 IShares Global 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 iShares Global Timber, you can compare the effects of market volatilities on Feintool International and IShares Global 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 IShares Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Feintool International and IShares Global.
Diversification Opportunities for Feintool International and IShares Global
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Feintool and IShares is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and iShares Global Timber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Global Timber 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 IShares Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Global Timber has no effect on the direction of Feintool International i.e., Feintool International and IShares Global go up and down completely randomly.
Pair Corralation between Feintool International and IShares Global
Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the IShares Global. In addition to that, Feintool International is 1.52 times more volatile than iShares Global Timber. It trades about -0.02 of its total potential returns per unit of risk. iShares Global Timber is currently generating about 0.02 per unit of volatility. If you would invest 2,629 in iShares Global Timber on September 3, 2024 and sell it today you would earn a total of 141.00 from holding iShares Global Timber or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.26% |
| Values | Daily Returns |
Feintool International Holding vs. iShares Global Timber
Performance |
| Timeline |
| Feintool International |
| iShares Global Timber |
Feintool International and IShares Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Feintool International and IShares Global
The main advantage of trading using opposite Feintool International and IShares Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, IShares Global 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 IShares Global will offset losses from the drop in IShares Global'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 |
| IShares Global vs. UBSFund Solutions MSCI | IShares Global vs. Vanguard SP 500 | IShares Global vs. iShares VII PLC | IShares Global vs. iShares Core SP |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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