Correlation Between Firan Technology and Cadre Holdings
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Cadre 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 Cadre 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 Cadre Holdings, you can compare the effects of market volatilities on Firan Technology and Cadre 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 Cadre Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Cadre Holdings.
Diversification Opportunities for Firan Technology and Cadre Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firan and Cadre is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Cadre Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cadre 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 Cadre Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cadre Holdings has no effect on the direction of Firan Technology i.e., Firan Technology and Cadre Holdings go up and down completely randomly.
Pair Corralation between Firan Technology and Cadre Holdings
Assuming the 90 days horizon Firan Technology Group is expected to generate 0.58 times more return on investment than Cadre Holdings. However, Firan Technology Group is 1.73 times less risky than Cadre Holdings. It trades about 0.12 of its potential returns per unit of risk. Cadre Holdings is currently generating about -0.14 per unit of risk. If you would invest 498.00 in Firan Technology Group on August 29, 2024 and sell it today you would earn a total of 22.00 from holding Firan Technology Group or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firan Technology Group vs. Cadre Holdings
Performance |
| Timeline |
| Firan Technology |
| Cadre Holdings |
Firan Technology and Cadre Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firan Technology and Cadre Holdings
The main advantage of trading using opposite Firan Technology and Cadre Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Cadre 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 Cadre Holdings will offset losses from the drop in Cadre Holdings' long position.| Firan Technology vs. HeartCore Enterprises | Firan Technology vs. Trust Stamp | Firan Technology vs. Quhuo | Firan Technology vs. C3 Ai Inc |
| Cadre Holdings vs. European Wax Center | Cadre Holdings vs. Enfusion | Cadre Holdings vs. CiT Inc | Cadre Holdings vs. Core Main |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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