Correlation Between Firan Technology and VARIOUS EATERIES
Can any of the company-specific risk be diversified away by investing in both Firan Technology and VARIOUS EATERIES 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 VARIOUS EATERIES 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 VARIOUS EATERIES LS, you can compare the effects of market volatilities on Firan Technology and VARIOUS EATERIES 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 VARIOUS EATERIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and VARIOUS EATERIES.
Diversification Opportunities for Firan Technology and VARIOUS EATERIES
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firan and VARIOUS is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and VARIOUS EATERIES LS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VARIOUS EATERIES 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 VARIOUS EATERIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VARIOUS EATERIES has no effect on the direction of Firan Technology i.e., Firan Technology and VARIOUS EATERIES go up and down completely randomly.
Pair Corralation between Firan Technology and VARIOUS EATERIES
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.75 times more return on investment than VARIOUS EATERIES. However, Firan Technology Group is 1.33 times less risky than VARIOUS EATERIES. It trades about -0.05 of its potential returns per unit of risk. VARIOUS EATERIES LS is currently generating about -0.34 per unit of risk. If you would invest 488.00 in Firan Technology Group on October 12, 2024 and sell it today you would lose (6.00) from holding Firan Technology Group or give up 1.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Firan Technology Group vs. VARIOUS EATERIES LS
Performance |
| Timeline |
| Firan Technology |
| VARIOUS EATERIES |
Firan Technology and VARIOUS EATERIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and VARIOUS EATERIES
The main advantage of trading using opposite Firan Technology and VARIOUS EATERIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, VARIOUS EATERIES 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 VARIOUS EATERIES will offset losses from the drop in VARIOUS EATERIES's long position.| Firan Technology vs. MICRONIC MYDATA | Firan Technology vs. NTT DATA | Firan Technology vs. MPH Health Care | Firan Technology vs. China Datang |
| VARIOUS EATERIES vs. Gaming and Leisure | VARIOUS EATERIES vs. RETAIL FOOD GROUP | VARIOUS EATERIES vs. USWE SPORTS AB | VARIOUS EATERIES vs. Playa Hotels Resorts |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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