Correlation Between Firan Technology and Apple
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on Firan Technology and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Apple.
Diversification Opportunities for Firan Technology and Apple
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firan and Apple is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Firan Technology i.e., Firan Technology and Apple go up and down completely randomly.
Pair Corralation between Firan Technology and Apple
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.87 times more return on investment than Apple. However, Firan Technology Group is 1.14 times less risky than Apple. It trades about 0.13 of its potential returns per unit of risk. Apple Inc is currently generating about -0.02 per unit of risk. If you would invest 480.00 in Firan Technology Group on October 30, 2024 and sell it today you would earn a total of 30.00 from holding Firan Technology Group or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Apple Inc
Performance |
| Timeline |
| Firan Technology |
| Apple Inc |
Firan Technology and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Apple
The main advantage of trading using opposite Firan Technology and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| Firan Technology vs. MidCap Financial Investment | Firan Technology vs. AOYAMA TRADING | Firan Technology vs. MEDCAW INVESTMENTS LS 01 | Firan Technology vs. Guangdong Investment Limited |
| Apple vs. Gladstone Investment | Apple vs. ANTA SPORTS PRODUCT | Apple vs. Universal Display | Apple vs. USWE SPORTS AB |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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