Correlation Between Procimmo Real and Feintool International
Can any of the company-specific risk be diversified away by investing in both Procimmo Real 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 Procimmo Real and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Procimmo Real Estate and Feintool International Holding, you can compare the effects of market volatilities on Procimmo Real 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 Procimmo Real with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Procimmo Real and Feintool International.
Diversification Opportunities for Procimmo Real and Feintool International
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Procimmo and Feintool is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Procimmo Real Estate and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and Procimmo Real 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 Procimmo Real Estate 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 Procimmo Real i.e., Procimmo Real and Feintool International go up and down completely randomly.
Pair Corralation between Procimmo Real and Feintool International
Assuming the 90 days trading horizon Procimmo Real Estate is expected to generate 0.53 times more return on investment than Feintool International. However, Procimmo Real Estate is 1.89 times less risky than Feintool International. It trades about 0.02 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.04 per unit of risk. If you would invest 15,100 in Procimmo Real Estate on September 3, 2024 and sell it today you would earn a total of 350.00 from holding Procimmo Real Estate or generate 2.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Procimmo Real Estate vs. Feintool International Holding
Performance |
| Timeline |
| Procimmo Real Estate |
| Feintool International |
Procimmo Real and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Procimmo Real and Feintool International
The main advantage of trading using opposite Procimmo Real and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Procimmo Real 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.| Procimmo Real vs. SPDR Dow Jones | Procimmo Real vs. Baloise Holding AG | Procimmo Real vs. SPDR FTSE UK | Procimmo Real vs. iShares BRIC 50 |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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