Correlation Between Allreal Holding and Feintool International

Can any of the company-specific risk be diversified away by investing in both Allreal 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 Allreal 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 Allreal Holding and Feintool International Holding, you can compare the effects of market volatilities on Allreal 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 Allreal Holding with a short position of Feintool International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allreal Holding and Feintool International.

Diversification Opportunities for Allreal Holding and Feintool International

0.11

Correlation Coefficient

Allreal Holding  Feintool International

Average diversification

The 3 months correlation between Allreal and Feintool is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Allreal Holding and Feintool International Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Feintool International and Allreal 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 Allreal Holding 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 Allreal Holding i.e., Allreal Holding and Feintool International go up and down completely randomly.

Pair Corralation between Allreal Holding and Feintool International

Assuming the 90 days trading horizon Allreal Holding is expected to generate 0.34 times more return on investment than Feintool International. However, Allreal Holding is 2.94 times less risky than Feintool International. It trades about -0.01 of its potential returns per unit of risk. Feintool International Holding is currently generating about -0.09 per unit of risk. If you would invest  18,400  in Allreal Holding on July 5, 2025 and sell it today you would lose (80.00) from holding Allreal Holding or give up 0.43% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Allreal Holding  vs.  Feintool International Holding

Allreal Holding

Risk-Adjusted Performance

Weakest

Over the last 90 days Allreal Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Allreal Holding is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Feintool International

Risk-Adjusted Performance

Weakest

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 latest unsteady performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Pair Trading with Allreal Holding and Feintool International

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

The idea behind Allreal Holding 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.

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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.