Correlation Between Firan Technology and Triple Flag
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Triple Flag 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 Triple Flag 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 Triple Flag Precious, you can compare the effects of market volatilities on Firan Technology and Triple Flag 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 Triple Flag. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Triple Flag.
Diversification Opportunities for Firan Technology and Triple Flag
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Firan and Triple is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Triple Flag Precious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Triple Flag Precious 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 Triple Flag. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Triple Flag Precious has no effect on the direction of Firan Technology i.e., Firan Technology and Triple Flag go up and down completely randomly.
Pair Corralation between Firan Technology and Triple Flag
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.18 times more return on investment than Triple Flag. However, Firan Technology is 1.18 times more volatile than Triple Flag Precious. It trades about 0.11 of its potential returns per unit of risk. Triple Flag Precious is currently generating about 0.04 per unit of risk. If you would invest 242.00 in Firan Technology Group on October 12, 2024 and sell it today you would earn a total of 496.00 from holding Firan Technology Group or generate 204.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Triple Flag Precious
Performance |
| Timeline |
| Firan Technology |
| Triple Flag Precious |
Firan Technology and Triple Flag Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Triple Flag
The main advantage of trading using opposite Firan Technology and Triple Flag positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Triple Flag 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 Triple Flag will offset losses from the drop in Triple Flag's long position.| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Magellan Aerospace |
| Triple Flag vs. Firan Technology Group | Triple Flag vs. NeuPath Health | Triple Flag vs. Constellation Software | Triple Flag vs. Reliq Health Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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