Correlation Between CCA Industries and Firan Technology
Can any of the company-specific risk be diversified away by investing in both CCA Industries and Firan Technology 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 CCA Industries and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCA Industries and Firan Technology Group, you can compare the effects of market volatilities on CCA Industries and Firan Technology 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 CCA Industries with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCA Industries and Firan Technology.
Diversification Opportunities for CCA Industries and Firan Technology
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CCA and Firan is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding CCA Industries and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and CCA Industries 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 CCA Industries are associated (or correlated) with Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of CCA Industries i.e., CCA Industries and Firan Technology go up and down completely randomly.
Pair Corralation between CCA Industries and Firan Technology
If you would invest 374.00 in Firan Technology Group on September 3, 2024 and sell it today you would earn a total of 155.00 from holding Firan Technology Group or generate 41.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.68% |
| Values | Daily Returns |
CCA Industries vs. Firan Technology Group
Performance |
| Timeline |
| CCA Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Firan Technology |
CCA Industries and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCA Industries and Firan Technology
The main advantage of trading using opposite CCA Industries and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCA Industries position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| CCA Industries vs. Firan Technology Group | CCA Industries vs. FitLife Brands, Common | CCA Industries vs. ENB Financial Corp | CCA Industries vs. Surge Components |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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