Correlation Between Firan Technology and COSMOSTEEL HLDGS
Can any of the company-specific risk be diversified away by investing in both Firan Technology and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS, you can compare the effects of market volatilities on Firan Technology and COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and COSMOSTEEL HLDGS.
Diversification Opportunities for Firan Technology and COSMOSTEEL HLDGS
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Firan and COSMOSTEEL is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and COSMOSTEEL HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSMOSTEEL HLDGS has no effect on the direction of Firan Technology i.e., Firan Technology and COSMOSTEEL HLDGS go up and down completely randomly.
Pair Corralation between Firan Technology and COSMOSTEEL HLDGS
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.81 times more return on investment than COSMOSTEEL HLDGS. However, Firan Technology Group is 1.24 times less risky than COSMOSTEEL HLDGS. It trades about 0.28 of its potential returns per unit of risk. COSMOSTEEL HLDGS is currently generating about 0.1 per unit of risk. If you would invest 478.00 in Firan Technology Group on November 6, 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. COSMOSTEEL HLDGS
Performance |
| Timeline |
| Firan Technology |
| COSMOSTEEL HLDGS |
Firan Technology and COSMOSTEEL HLDGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and COSMOSTEEL HLDGS
The main advantage of trading using opposite Firan Technology and COSMOSTEEL HLDGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, COSMOSTEEL HLDGS 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 COSMOSTEEL HLDGS will offset losses from the drop in COSMOSTEEL HLDGS's long position.| Firan Technology vs. Titan Machinery | Firan Technology vs. Major Drilling Group | Firan Technology vs. Tokyu Construction Co | Firan Technology vs. NorAm Drilling AS |
| COSMOSTEEL HLDGS vs. Harmony Gold Mining | COSMOSTEEL HLDGS vs. De Grey Mining | COSMOSTEEL HLDGS vs. Monument Mining Limited | COSMOSTEEL HLDGS vs. MAGNUM MINING EXP |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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