Correlation Between Firan Technology and Senvest Capital
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Senvest Capital 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 Senvest Capital 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 Senvest Capital, you can compare the effects of market volatilities on Firan Technology and Senvest Capital 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 Senvest Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Senvest Capital.
Diversification Opportunities for Firan Technology and Senvest Capital
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firan and Senvest is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Senvest Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senvest Capital 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 Senvest Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senvest Capital has no effect on the direction of Firan Technology i.e., Firan Technology and Senvest Capital go up and down completely randomly.
Pair Corralation between Firan Technology and Senvest Capital
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.93 times more return on investment than Senvest Capital. However, Firan Technology is 1.93 times more volatile than Senvest Capital. It trades about 0.12 of its potential returns per unit of risk. Senvest Capital is currently generating about 0.02 per unit of risk. If you would invest 234.00 in Firan Technology Group on September 26, 2024 and sell it today you would earn a total of 519.00 from holding Firan Technology Group or generate 221.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Senvest Capital
Performance |
| Timeline |
| Firan Technology |
| Senvest Capital |
Firan Technology and Senvest Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Senvest Capital
The main advantage of trading using opposite Firan Technology and Senvest Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Senvest Capital 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 Senvest Capital will offset losses from the drop in Senvest Capital's long position.| Firan Technology vs. AnalytixInsight | Firan Technology vs. Baylin Technologies | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Altagas Cum Red |
| Senvest Capital vs. Firan Technology Group | Senvest Capital vs. Brookfield Office Properties | Senvest Capital vs. Income Financial Trust | Senvest Capital vs. Ocumetics Technology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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