Correlation Between Firan Technology and Alaska Energy
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Alaska Energy 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 Alaska Energy 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 Alaska Energy Metals, you can compare the effects of market volatilities on Firan Technology and Alaska Energy 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 Alaska Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Alaska Energy.
Diversification Opportunities for Firan Technology and Alaska Energy
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Firan and Alaska is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Alaska Energy Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alaska Energy Metals 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 Alaska Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alaska Energy Metals has no effect on the direction of Firan Technology i.e., Firan Technology and Alaska Energy go up and down completely randomly.
Pair Corralation between Firan Technology and Alaska Energy
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.26 times more return on investment than Alaska Energy. However, Firan Technology Group is 3.87 times less risky than Alaska Energy. It trades about -0.01 of its potential returns per unit of risk. Alaska Energy Metals is currently generating about -0.21 per unit of risk. 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Alaska Energy Metals
Performance |
| Timeline |
| Firan Technology |
| Alaska Energy Metals |
Firan Technology and Alaska Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Alaska Energy
The main advantage of trading using opposite Firan Technology and Alaska Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Alaska Energy 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 Alaska Energy will offset losses from the drop in Alaska Energy's long position.| Firan Technology vs. Baylin Technologies | Firan Technology vs. Gatekeeper Systems | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Altagas Cum Red |
| Alaska Energy vs. Olympia Financial Group | Alaska Energy vs. First National Financial | Alaska Energy vs. National Bank of | Alaska Energy vs. IGM Financial |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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