Correlation Between IShares Global and Feintool International
Can any of the company-specific risk be diversified away by investing in both IShares Global 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 IShares Global and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Global Timber and Feintool International Holding, you can compare the effects of market volatilities on IShares Global 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 IShares Global with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Global and Feintool International.
Diversification Opportunities for IShares Global and Feintool International
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between IShares and Feintool is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding iShares Global Timber and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and IShares Global 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 iShares Global Timber 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 IShares Global i.e., IShares Global and Feintool International go up and down completely randomly.
Pair Corralation between IShares Global and Feintool International
Assuming the 90 days trading horizon iShares Global Timber is expected to generate 0.38 times more return on investment than Feintool International. However, iShares Global Timber is 2.61 times less risky than Feintool International. It trades about -0.15 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.24 per unit of risk. If you would invest 2,764 in iShares Global Timber on December 1, 2024 and sell it today you would lose (71.00) from holding iShares Global Timber or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
iShares Global Timber vs. Feintool International Holding
Performance |
| Timeline |
| iShares Global Timber |
| Feintool International |
IShares Global and Feintool International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Global and Feintool International
The main advantage of trading using opposite IShares Global and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Global 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.| IShares Global vs. iShares Corp Bond | IShares Global vs. iShares Emerging Asia | IShares Global vs. iShares MSCI Global | IShares Global vs. iShares VII PLC |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |