Correlation Between Swiss Re and Feintool International
Can any of the company-specific risk be diversified away by investing in both Swiss Re 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 Swiss Re and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Re AG and Feintool International Holding, you can compare the effects of market volatilities on Swiss Re 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 Swiss Re with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Re and Feintool International.
Diversification Opportunities for Swiss Re and Feintool International
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swiss and Feintool is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Re 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 Swiss Re 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 Swiss Re 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 Swiss Re i.e., Swiss Re and Feintool International go up and down completely randomly.
Pair Corralation between Swiss Re and Feintool International
Assuming the 90 days trading horizon Swiss Re AG is expected to generate 0.88 times more return on investment than Feintool International. However, Swiss Re AG is 1.14 times less risky than Feintool International. It trades about 0.08 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.05 per unit of risk. If you would invest 11,355 in Swiss Re AG on September 1, 2024 and sell it today you would earn a total of 1,660 from holding Swiss Re AG or generate 14.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swiss Re AG vs. Feintool International Holding
Performance |
| Timeline |
| Swiss Re AG |
| Feintool International |
Swiss Re and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Re and Feintool International
The main advantage of trading using opposite Swiss Re and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Re 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.| Swiss Re vs. Zurich Insurance Group | Swiss Re vs. Swiss Life Holding | Swiss Re vs. Novartis AG | Swiss Re vs. UBS Group AG |
| Feintool International vs. OC Oerlikon Corp | Feintool International vs. Helvetia Holding AG | Feintool International vs. Swiss Life Holding | Feintool International vs. VAT Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |