Correlation Between Firan Technology and Strategic Education
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Strategic Education 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 Strategic Education 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 Strategic Education, you can compare the effects of market volatilities on Firan Technology and Strategic Education 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 Strategic Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Strategic Education.
Diversification Opportunities for Firan Technology and Strategic Education
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firan and Strategic is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Strategic Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategic Education 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 Strategic Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategic Education has no effect on the direction of Firan Technology i.e., Firan Technology and Strategic Education go up and down completely randomly.
Pair Corralation between Firan Technology and Strategic Education
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.79 times more return on investment than Strategic Education. However, Firan Technology is 1.79 times more volatile than Strategic Education. It trades about 0.24 of its potential returns per unit of risk. Strategic Education is currently generating about 0.18 per unit of risk. If you would invest 484.00 in Firan Technology Group on November 3, 2024 and sell it today you would earn a total of 46.00 from holding Firan Technology Group or generate 9.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Strategic Education
Performance |
| Timeline |
| Firan Technology |
| Strategic Education |
Firan Technology and Strategic Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Strategic Education
The main advantage of trading using opposite Firan Technology and Strategic Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Strategic Education 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 Strategic Education will offset losses from the drop in Strategic Education's long position.| Firan Technology vs. PLAYTIKA HOLDING DL 01 | Firan Technology vs. Mitsui Chemicals | Firan Technology vs. BROADSTNET LEADL 00025 | Firan Technology vs. TITANIUM TRANSPORTGROUP |
| Strategic Education vs. Perdoceo Education | Strategic Education vs. SCANSOURCE | Strategic Education vs. Adtalem Global Education | Strategic Education vs. betterU Education Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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