Correlation Between Calian Technologies and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Calian Technologies 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 Calian Technologies and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calian Technologies and Firan Technology Group, you can compare the effects of market volatilities on Calian Technologies 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 Calian Technologies with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calian Technologies and Firan Technology.
Diversification Opportunities for Calian Technologies and Firan Technology
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Calian and Firan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Calian Technologies and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Calian Technologies 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 Calian Technologies 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 Calian Technologies i.e., Calian Technologies and Firan Technology go up and down completely randomly.
Pair Corralation between Calian Technologies and Firan Technology
Assuming the 90 days trading horizon Calian Technologies is expected to under-perform the Firan Technology. In addition to that, Calian Technologies is 1.42 times more volatile than Firan Technology Group. It trades about -0.13 of its total potential returns per unit of risk. Firan Technology Group is currently generating about -0.01 per unit of volatility. If you would invest 757.00 in Firan Technology Group on September 15, 2024 and sell it today you would lose (3.00) from holding Firan Technology Group or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calian Technologies vs. Firan Technology Group
Performance |
| Timeline |
| Calian Technologies |
| Firan Technology |
Calian Technologies and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calian Technologies and Firan Technology
The main advantage of trading using opposite Calian Technologies and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calian Technologies 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.| Calian Technologies vs. Flow Beverage Corp | Calian Technologies vs. iShares Canadian HYBrid | Calian Technologies vs. Altagas Cum Red | Calian Technologies vs. European Residential Real |
| Firan Technology vs. Baylin Technologies | Firan Technology vs. Gatekeeper Systems | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Altagas Cum Red |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |