Correlation Between Firan Technology and Sabio Holdings
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Sabio Holdings 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 Sabio Holdings 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 Sabio Holdings, you can compare the effects of market volatilities on Firan Technology and Sabio Holdings 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 Sabio Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Sabio Holdings.
Diversification Opportunities for Firan Technology and Sabio Holdings
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Firan and Sabio is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Sabio Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabio Holdings 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 Sabio Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabio Holdings has no effect on the direction of Firan Technology i.e., Firan Technology and Sabio Holdings go up and down completely randomly.
Pair Corralation between Firan Technology and Sabio Holdings
Assuming the 90 days trading horizon Firan Technology is expected to generate 1.9 times less return on investment than Sabio Holdings. But when comparing it to its historical volatility, Firan Technology Group is 2.94 times less risky than Sabio Holdings. It trades about 0.11 of its potential returns per unit of risk. Sabio Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Sabio Holdings on September 3, 2024 and sell it today you would earn a total of 23.00 from holding Sabio Holdings or generate 82.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Sabio Holdings
Performance |
| Timeline |
| Firan Technology |
| Sabio Holdings |
Firan Technology and Sabio Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Sabio Holdings
The main advantage of trading using opposite Firan Technology and Sabio Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Sabio Holdings 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 Sabio Holdings will offset losses from the drop in Sabio Holdings' long position.| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Magellan Aerospace |
| Sabio Holdings vs. Telus Corp | Sabio Holdings vs. Toronto Dominion Bank | Sabio Holdings vs. TC Energy Corp | Sabio Holdings vs. Manulife Financial 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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