Correlation Between Feintool International and Starrag Group

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

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

Diversification Opportunities for Feintool International and Starrag Group

0.73

Correlation Coefficient

Feintool International  Starrag Group

Poor diversification

The 3 months correlation between Feintool and Starrag is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Feintool International Holding and Starrag Group Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Starrag Group Holding and Feintool International 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 Feintool International Holding are associated (or correlated) with Starrag Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Starrag Group Holding has no effect on the direction of Feintool International i.e., Feintool International and Starrag Group go up and down completely randomly.

Pair Corralation between Feintool International and Starrag Group

Assuming the 90 days trading horizon Feintool International Holding is expected to under-perform the Starrag Group. In addition to that, Feintool International is 1.08 times more volatile than Starrag Group Holding. It trades about -0.06 of its total potential returns per unit of risk. Starrag Group Holding is currently generating about -0.03 per unit of volatility. If you would invest  3,130  in Starrag Group Holding on September 6, 2025 and sell it today you would lose (130.00) from holding Starrag Group Holding or give up 4.15% of portfolio value over 90 days.

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

Feintool International Holding  vs.  Starrag Group Holding

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 abnormal 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.

Starrag Group Holding

Risk-Adjusted Performance

Weakest

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

Pair Trading with Feintool International and Starrag Group

The main advantage of trading using opposite Feintool International and Starrag Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Feintool International position performs unexpectedly, Starrag Group 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 Starrag Group will offset losses from the drop in Starrag Group's long position.

The idea behind Feintool International Holding and Starrag Group 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.