Correlation Between Firsthand Alternative and Steward Small
Can any of the company-specific risk be diversified away by investing in both Firsthand Alternative and Steward Small 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 Firsthand Alternative and Steward Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Alternative Energy and Steward Small Mid Cap, you can compare the effects of market volatilities on Firsthand Alternative and Steward Small 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 Firsthand Alternative with a short position of Steward Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Alternative and Steward Small.
Diversification Opportunities for Firsthand Alternative and Steward Small
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Firsthand and Steward is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Alternative Energy and Steward Small Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Steward Small Mid and Firsthand Alternative 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 Firsthand Alternative Energy are associated (or correlated) with Steward Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Steward Small Mid has no effect on the direction of Firsthand Alternative i.e., Firsthand Alternative and Steward Small go up and down completely randomly.
Pair Corralation between Firsthand Alternative and Steward Small
Assuming the 90 days horizon Firsthand Alternative is expected to generate 1.5 times less return on investment than Steward Small. In addition to that, Firsthand Alternative is 2.5 times more volatile than Steward Small Mid Cap. It trades about 0.02 of its total potential returns per unit of risk. Steward Small Mid Cap is currently generating about 0.08 per unit of volatility. If you would invest 931.00 in Steward Small Mid Cap on September 14, 2024 and sell it today you would earn a total of 117.00 from holding Steward Small Mid Cap or generate 12.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.7% |
| Values | Daily Returns |
Firsthand Alternative Energy vs. Steward Small Mid Cap
Performance |
| Timeline |
| Firsthand Alternative |
| Steward Small Mid |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Firsthand Alternative and Steward Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Alternative and Steward Small
The main advantage of trading using opposite Firsthand Alternative and Steward Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Alternative position performs unexpectedly, Steward Small 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 Steward Small will offset losses from the drop in Steward Small's long position.| Firsthand Alternative vs. Berkshire Focus | Firsthand Alternative vs. Red Oak Technology | Firsthand Alternative vs. Jacob Internet Fund | Firsthand Alternative vs. Kinetics Internet Fund |
| Steward Small vs. Firsthand Alternative Energy | Steward Small vs. Oil Gas Ultrasector | Steward Small vs. Hennessy Bp Energy | Steward Small vs. Gamco Natural Resources |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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