Correlation Between Firan Technology and Lion One
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Lion One 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 Lion One 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 Lion One Metals, you can compare the effects of market volatilities on Firan Technology and Lion One 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 Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Lion One.
Diversification Opportunities for Firan Technology and Lion One
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Firan and Lion is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One 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 Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of Firan Technology i.e., Firan Technology and Lion One go up and down completely randomly.
Pair Corralation between Firan Technology and Lion One
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.52 times more return on investment than Lion One. However, Firan Technology Group is 1.92 times less risky than Lion One. It trades about 0.03 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.17 per unit of risk. If you would invest 719.00 in Firan Technology Group on August 31, 2024 and sell it today you would earn a total of 7.00 from holding Firan Technology Group or generate 0.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Lion One Metals
Performance |
| Timeline |
| Firan Technology |
| Lion One Metals |
Firan Technology and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Lion One
The main advantage of trading using opposite Firan Technology and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Lion One 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 Lion One will offset losses from the drop in Lion One's long position.| Firan Technology vs. Baylin Technologies | Firan Technology vs. Supremex | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Brompton European Dividend |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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