Correlation Between Firan Technology and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Firan Technology and MEDICAL FACILITIES 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 Firan Technology and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firan Technology Group and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Firan Technology and MEDICAL FACILITIES 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 Firan Technology with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and MEDICAL FACILITIES.
Diversification Opportunities for Firan Technology and MEDICAL FACILITIES
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Firan and MEDICAL is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and Firan Technology 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 Firan Technology Group are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Firan Technology i.e., Firan Technology and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Firan Technology and MEDICAL FACILITIES
Assuming the 90 days trading horizon Firan Technology is expected to generate 1.07 times less return on investment than MEDICAL FACILITIES. But when comparing it to its historical volatility, Firan Technology Group is 1.24 times less risky than MEDICAL FACILITIES. It trades about 0.11 of its potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 600.00 in MEDICAL FACILITIES NEW on November 3, 2024 and sell it today you would earn a total of 480.00 from holding MEDICAL FACILITIES NEW or generate 80.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Firan Technology Group vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Firan Technology |
| MEDICAL FACILITIES NEW |
Firan Technology and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and MEDICAL FACILITIES
The main advantage of trading using opposite Firan Technology and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Firan Technology vs. Infrastrutture Wireless Italiane | Firan Technology vs. Focus Home Interactive | Firan Technology vs. American Homes 4 | Firan Technology vs. HAVERTY FURNITURE A |
| MEDICAL FACILITIES vs. Semiconductor Manufacturing International | MEDICAL FACILITIES vs. ELMOS SEMICONDUCTOR | MEDICAL FACILITIES vs. TOREX SEMICONDUCTOR LTD | MEDICAL FACILITIES vs. Universal Health Realty |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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