Correlation Between Firan Technology and CENTURIA OFFICE
Can any of the company-specific risk be diversified away by investing in both Firan Technology and CENTURIA OFFICE 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 CENTURIA OFFICE 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 CENTURIA OFFICE REIT, you can compare the effects of market volatilities on Firan Technology and CENTURIA OFFICE 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 CENTURIA OFFICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and CENTURIA OFFICE.
Diversification Opportunities for Firan Technology and CENTURIA OFFICE
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Firan and CENTURIA is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and CENTURIA OFFICE REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTURIA OFFICE REIT 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 CENTURIA OFFICE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTURIA OFFICE REIT has no effect on the direction of Firan Technology i.e., Firan Technology and CENTURIA OFFICE go up and down completely randomly.
Pair Corralation between Firan Technology and CENTURIA OFFICE
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.2 times more return on investment than CENTURIA OFFICE. However, Firan Technology is 1.2 times more volatile than CENTURIA OFFICE REIT. It trades about 0.28 of its potential returns per unit of risk. CENTURIA OFFICE REIT is currently generating about 0.01 per unit of risk. If you would invest 478.00 in Firan Technology Group on November 5, 2024 and sell it today you would earn a total of 52.00 from holding Firan Technology Group or generate 10.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. CENTURIA OFFICE REIT
Performance |
| Timeline |
| Firan Technology |
| CENTURIA OFFICE REIT |
Firan Technology and CENTURIA OFFICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and CENTURIA OFFICE
The main advantage of trading using opposite Firan Technology and CENTURIA OFFICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, CENTURIA OFFICE 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 CENTURIA OFFICE will offset losses from the drop in CENTURIA OFFICE's long position.| Firan Technology vs. GameStop Corp | Firan Technology vs. National Retail Properties | Firan Technology vs. FAST RETAIL ADR | Firan Technology vs. TRADEDOUBLER AB SK |
| CENTURIA OFFICE vs. MTY Food Group | CENTURIA OFFICE vs. INTERNET INJPADR 1 | CENTURIA OFFICE vs. HEMISPHERE EGY | CENTURIA OFFICE vs. Hemisphere Energy Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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