Correlation Between Komax Holding and Feintool International
Can any of the company-specific risk be diversified away by investing in both Komax Holding and Feintool International 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 Komax Holding and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Komax Holding AG and Feintool International Holding, you can compare the effects of market volatilities on Komax Holding and Feintool International 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 Komax Holding with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Komax Holding and Feintool International.
Diversification Opportunities for Komax Holding and Feintool International
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Komax and Feintool is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Komax Holding AG and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and Komax Holding 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 Komax Holding AG are associated (or correlated) with Feintool International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Feintool International has no effect on the direction of Komax Holding i.e., Komax Holding and Feintool International go up and down completely randomly.
Pair Corralation between Komax Holding and Feintool International
Assuming the 90 days trading horizon Komax Holding AG is expected to generate 1.52 times more return on investment than Feintool International. However, Komax Holding is 1.52 times more volatile than Feintool International Holding. It trades about 0.12 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.06 per unit of risk. If you would invest 11,920 in Komax Holding AG on November 8, 2024 and sell it today you would earn a total of 1,380 from holding Komax Holding AG or generate 11.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Komax Holding AG vs. Feintool International Holding
Performance |
| Timeline |
| Komax Holding AG |
| Feintool International |
Komax Holding and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Komax Holding and Feintool International
The main advantage of trading using opposite Komax Holding and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Komax Holding position performs unexpectedly, Feintool International 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 Feintool International will offset losses from the drop in Feintool International's long position.| Komax Holding vs. Comet Holding AG | Komax Holding vs. Bossard Holding AG | Komax Holding vs. VAT Group AG | Komax Holding vs. Bucher Industries AG |
| Feintool International vs. Rieter Holding AG | Feintool International vs. Autoneum Holding AG | Feintool International vs. Bucher Industries AG | Feintool International vs. Komax Holding 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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