Correlation Between Firan Technology and JLF INVESTMENT
Can any of the company-specific risk be diversified away by investing in both Firan Technology and JLF INVESTMENT 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 JLF INVESTMENT 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 JLF INVESTMENT, you can compare the effects of market volatilities on Firan Technology and JLF INVESTMENT 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 JLF INVESTMENT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and JLF INVESTMENT.
Diversification Opportunities for Firan Technology and JLF INVESTMENT
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Firan and JLF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and JLF INVESTMENT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JLF INVESTMENT 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 JLF INVESTMENT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JLF INVESTMENT has no effect on the direction of Firan Technology i.e., Firan Technology and JLF INVESTMENT go up and down completely randomly.
Pair Corralation between Firan Technology and JLF INVESTMENT
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 | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. JLF INVESTMENT
Performance |
| Timeline |
| Firan Technology |
| JLF INVESTMENT |
Firan Technology and JLF INVESTMENT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and JLF INVESTMENT
The main advantage of trading using opposite Firan Technology and JLF INVESTMENT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, JLF INVESTMENT 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 JLF INVESTMENT will offset losses from the drop in JLF INVESTMENT'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 |
| JLF INVESTMENT vs. EPSILON HEALTHCARE LTD | JLF INVESTMENT vs. Wenzhou Kangning Hospital | JLF INVESTMENT vs. Universal Health Realty | JLF INVESTMENT vs. ULTRA CLEAN HLDGS |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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