Correlation Between Julius Baer and Feintool International

Can any of the company-specific risk be diversified away by investing in both Julius Baer 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 Julius Baer and Feintool International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Julius Baer Gruppe and Feintool International Holding, you can compare the effects of market volatilities on Julius Baer 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 Julius Baer with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Julius Baer and Feintool International.

Diversification Opportunities for Julius Baer and Feintool International

-0.72

Correlation Coefficient

Julius Baer  Feintool International

Pay attention - limited upside

The 3 months correlation between Julius and Feintool is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Julius Baer Gruppe and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and Julius Baer 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 Julius Baer Gruppe 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 Julius Baer i.e., Julius Baer and Feintool International go up and down completely randomly.

Pair Corralation between Julius Baer and Feintool International

Assuming the 90 days trading horizon Julius Baer Gruppe is expected to generate 0.86 times more return on investment than Feintool International. However, Julius Baer Gruppe is 1.17 times less risky than Feintool International. It trades about 0.25 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.16 per unit of risk. If you would invest  4,658  in Julius Baer Gruppe on September 12, 2024 and sell it today you would earn a total of  1,246  from holding Julius Baer Gruppe or generate 26.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Julius Baer Gruppe  vs.  Feintool International Holding

Julius Baer Gruppe

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Julius Baer Gruppe are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Julius Baer showed solid returns over the last few months and may actually be approaching a breakup point.

Feintool International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Feintool International Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Julius Baer and Feintool International

The main advantage of trading using opposite Julius Baer and Feintool International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Julius Baer 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.

The idea behind Julius Baer Gruppe and Feintool International Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.