Correlation Between Firan Technology and TriMas
Can any of the company-specific risk be diversified away by investing in both Firan Technology and TriMas 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 TriMas 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 TriMas, you can compare the effects of market volatilities on Firan Technology and TriMas 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 TriMas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and TriMas.
Diversification Opportunities for Firan Technology and TriMas
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firan and TriMas is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and TriMas in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TriMas 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 TriMas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TriMas has no effect on the direction of Firan Technology i.e., Firan Technology and TriMas go up and down completely randomly.
Pair Corralation between Firan Technology and TriMas
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.0 times more return on investment than TriMas. However, Firan Technology Group is 1.0 times less risky than TriMas. It trades about 0.06 of its potential returns per unit of risk. TriMas is currently generating about -0.03 per unit of risk. If you would invest 392.00 in Firan Technology Group on October 25, 2024 and sell it today you would earn a total of 88.00 from holding Firan Technology Group or generate 22.45% 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. TriMas
Performance |
| Timeline |
| Firan Technology |
| TriMas |
Firan Technology and TriMas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and TriMas
The main advantage of trading using opposite Firan Technology and TriMas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, TriMas 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 TriMas will offset losses from the drop in TriMas' long position.| Firan Technology vs. ZURICH INSURANCE GROUP | Firan Technology vs. QBE Insurance Group | Firan Technology vs. PICKN PAY STORES | Firan Technology vs. Burlington Stores |
| TriMas vs. CanSino Biologics | TriMas vs. Forsys Metals Corp | TriMas vs. SIERRA METALS | TriMas vs. CITIC Telecom International |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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