Correlation Between Firan Technology and Lomiko Metals
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Lomiko Metals 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 Lomiko Metals 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 Lomiko Metals, you can compare the effects of market volatilities on Firan Technology and Lomiko Metals 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 Lomiko Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Lomiko Metals.
Diversification Opportunities for Firan Technology and Lomiko Metals
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firan and Lomiko is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Lomiko Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lomiko 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 Lomiko Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lomiko Metals has no effect on the direction of Firan Technology i.e., Firan Technology and Lomiko Metals go up and down completely randomly.
Pair Corralation between Firan Technology and Lomiko Metals
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.46 times more return on investment than Lomiko Metals. However, Firan Technology Group is 2.18 times less risky than Lomiko Metals. It trades about 0.25 of its potential returns per unit of risk. Lomiko Metals is currently generating about -0.11 per unit of risk. If you would invest 586.00 in Firan Technology Group on August 30, 2024 and sell it today you would earn a total of 140.00 from holding Firan Technology Group or generate 23.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Lomiko Metals
Performance |
| Timeline |
| Firan Technology |
| Lomiko Metals |
Firan Technology and Lomiko Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Lomiko Metals
The main advantage of trading using opposite Firan Technology and Lomiko Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Lomiko Metals 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 Lomiko Metals will offset losses from the drop in Lomiko Metals' long position.| Firan Technology vs. Cielo Waste Solutions | Firan Technology vs. Forstrong Global Income | Firan Technology vs. Terreno Resources Corp | Firan Technology vs. iShares Canadian HYBrid |
| Lomiko Metals vs. Ocumetics Technology Corp | Lomiko Metals vs. Quisitive Technology Solutions | Lomiko Metals vs. Wishpond Technologies | Lomiko Metals vs. Firan Technology Group |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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