Correlation Between Firan Technology and National Bank
Can any of the company-specific risk be diversified away by investing in both Firan Technology and National Bank 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 National Bank 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 National Bank of, you can compare the effects of market volatilities on Firan Technology and National Bank 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 National Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and National Bank.
Diversification Opportunities for Firan Technology and National Bank
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Firan and National is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and National Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Bank 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 National Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Bank has no effect on the direction of Firan Technology i.e., Firan Technology and National Bank go up and down completely randomly.
Pair Corralation between Firan Technology and National Bank
Assuming the 90 days trading horizon Firan Technology Group is expected to under-perform the National Bank. In addition to that, Firan Technology is 1.49 times more volatile than National Bank of. It trades about -0.04 of its total potential returns per unit of risk. National Bank of is currently generating about 0.16 per unit of volatility. If you would invest 2,419 in National Bank of on October 11, 2024 and sell it today you would earn a total of 75.00 from holding National Bank of or generate 3.1% 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. National Bank of
Performance |
| Timeline |
| Firan Technology |
| National Bank |
Firan Technology and National Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and National Bank
The main advantage of trading using opposite Firan Technology and National Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, National Bank 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 National Bank will offset losses from the drop in National Bank's long position.| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Magellan Aerospace |
| National Bank vs. Diamond Estates Wines | National Bank vs. Firan Technology Group | National Bank vs. AKITA Drilling | National Bank vs. Marimaca Copper Corp |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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