Correlation Between Firan Technology and WIMFARM SA
Can any of the company-specific risk be diversified away by investing in both Firan Technology and WIMFARM SA 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 WIMFARM SA 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 WIMFARM SA EO, you can compare the effects of market volatilities on Firan Technology and WIMFARM SA 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 WIMFARM SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and WIMFARM SA.
Diversification Opportunities for Firan Technology and WIMFARM SA
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firan and WIMFARM is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and WIMFARM SA EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIMFARM SA EO 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 WIMFARM SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIMFARM SA EO has no effect on the direction of Firan Technology i.e., Firan Technology and WIMFARM SA go up and down completely randomly.
Pair Corralation between Firan Technology and WIMFARM SA
Assuming the 90 days trading horizon Firan Technology Group is expected to under-perform the WIMFARM SA. But the stock apears to be less risky and, when comparing its historical volatility, Firan Technology Group is 4.84 times less risky than WIMFARM SA. The stock trades about -0.05 of its potential returns per unit of risk. The WIMFARM SA EO is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 357.00 in WIMFARM SA EO on October 12, 2024 and sell it today you would earn a total of 40.00 from holding WIMFARM SA EO or generate 11.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. WIMFARM SA EO
Performance |
| Timeline |
| Firan Technology |
| WIMFARM SA EO |
Firan Technology and WIMFARM SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and WIMFARM SA
The main advantage of trading using opposite Firan Technology and WIMFARM SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, WIMFARM SA 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 WIMFARM SA will offset losses from the drop in WIMFARM SA's long position.| Firan Technology vs. MICRONIC MYDATA | Firan Technology vs. NTT DATA | Firan Technology vs. MPH Health Care | Firan Technology vs. China Datang |
| WIMFARM SA vs. Superior Plus Corp | WIMFARM SA vs. NMI Holdings | WIMFARM SA vs. SIVERS SEMICONDUCTORS AB | WIMFARM SA vs. Talanx AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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