Correlation Between Lycos Energy and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Lycos Energy and Firan Technology 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 Lycos Energy and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lycos Energy and Firan Technology Group, you can compare the effects of market volatilities on Lycos Energy and Firan Technology 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 Lycos Energy with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lycos Energy and Firan Technology.
Diversification Opportunities for Lycos Energy and Firan Technology
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lycos and Firan is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lycos Energy and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Lycos Energy 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 Lycos Energy are associated (or correlated) with Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of Lycos Energy i.e., Lycos Energy and Firan Technology go up and down completely randomly.
Pair Corralation between Lycos Energy and Firan Technology
Assuming the 90 days horizon Lycos Energy is expected to under-perform the Firan Technology. In addition to that, Lycos Energy is 1.75 times more volatile than Firan Technology Group. It trades about -0.05 of its total potential returns per unit of risk. Firan Technology Group is currently generating about 0.19 per unit of volatility. If you would invest 689.00 in Firan Technology Group on August 28, 2024 and sell it today you would earn a total of 53.00 from holding Firan Technology Group or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lycos Energy vs. Firan Technology Group
Performance |
| Timeline |
| Lycos Energy |
| Firan Technology |
Lycos Energy and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lycos Energy and Firan Technology
The main advantage of trading using opposite Lycos Energy and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lycos Energy position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.| Lycos Energy vs. InPlay Oil Corp | Lycos Energy vs. Yangarra Resources | Lycos Energy vs. iShares Canadian HYBrid | Lycos Energy vs. Altagas Cum Red |
| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Heroux Devtek |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |