Correlation Between Firan Technology and MTY Food
Can any of the company-specific risk be diversified away by investing in both Firan Technology and MTY Food 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 MTY Food 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 MTY Food Group, you can compare the effects of market volatilities on Firan Technology and MTY Food 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 MTY Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and MTY Food.
Diversification Opportunities for Firan Technology and MTY Food
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firan and MTY is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and MTY Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MTY Food Group 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 MTY Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MTY Food Group has no effect on the direction of Firan Technology i.e., Firan Technology and MTY Food go up and down completely randomly.
Pair Corralation between Firan Technology and MTY Food
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.15 times more return on investment than MTY Food. However, Firan Technology is 1.15 times more volatile than MTY Food Group. It trades about 0.27 of its potential returns per unit of risk. MTY Food Group is currently generating about -0.09 per unit of risk. If you would invest 694.00 in Firan Technology Group on January 12, 2025 and sell it today you would earn a total of 104.00 from holding Firan Technology Group or generate 14.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. MTY Food Group
Performance |
| Timeline |
| Firan Technology |
| MTY Food Group |
Firan Technology and MTY Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and MTY Food
The main advantage of trading using opposite Firan Technology and MTY Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, MTY Food 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 MTY Food will offset losses from the drop in MTY Food's long position.| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Magellan Aerospace |
| MTY Food vs. Restaurant Brands International | MTY Food vs. Enghouse Systems | MTY Food vs. Metro Inc | MTY Food vs. BRP Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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