Correlation Between Firan Technology and GENTING SG
Can any of the company-specific risk be diversified away by investing in both Firan Technology and GENTING SG 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 GENTING SG 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 GENTING SG LTD, you can compare the effects of market volatilities on Firan Technology and GENTING SG 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 GENTING SG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and GENTING SG.
Diversification Opportunities for Firan Technology and GENTING SG
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firan and GENTING is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and GENTING SG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENTING SG LTD 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 GENTING SG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENTING SG LTD has no effect on the direction of Firan Technology i.e., Firan Technology and GENTING SG go up and down completely randomly.
Pair Corralation between Firan Technology and GENTING SG
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.33 times more return on investment than GENTING SG. However, Firan Technology Group is 3.04 times less risky than GENTING SG. It trades about 0.13 of its potential returns per unit of risk. GENTING SG LTD is currently generating about -0.02 per unit of risk. If you would invest 472.00 in Firan Technology Group on October 24, 2024 and sell it today you would earn a total of 10.00 from holding Firan Technology Group or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Firan Technology Group vs. GENTING SG LTD
Performance |
| Timeline |
| Firan Technology |
| GENTING SG LTD |
Firan Technology and GENTING SG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and GENTING SG
The main advantage of trading using opposite Firan Technology and GENTING SG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, GENTING SG 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 GENTING SG will offset losses from the drop in GENTING SG's long position.| Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc | Firan Technology vs. Apple Inc |
| GENTING SG vs. Gold Road Resources | GENTING SG vs. Liberty Broadband | GENTING SG vs. Yuexiu Transport Infrastructure | GENTING SG vs. Texas Roadhouse |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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