Correlation Between Laser Energetics and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Laser Energetics 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 Laser Energetics and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laser Energetics and Firan Technology Group, you can compare the effects of market volatilities on Laser Energetics 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 Laser Energetics with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laser Energetics and Firan Technology.
Diversification Opportunities for Laser Energetics and Firan Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Laser and Firan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Laser Energetics and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Laser Energetics 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 Laser Energetics 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 Laser Energetics i.e., Laser Energetics and Firan Technology go up and down completely randomly.
Pair Corralation between Laser Energetics and Firan Technology
Given the investment horizon of 90 days Laser Energetics is expected to generate 14.82 times more return on investment than Firan Technology. However, Laser Energetics is 14.82 times more volatile than Firan Technology Group. It trades about 0.04 of its potential returns per unit of risk. Firan Technology Group is currently generating about 0.1 per unit of risk. If you would invest 0.00 in Laser Energetics on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Laser Energetics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Laser Energetics vs. Firan Technology Group
Performance |
| Timeline |
| Laser Energetics |
| Firan Technology |
Laser Energetics and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laser Energetics and Firan Technology
The main advantage of trading using opposite Laser Energetics and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laser Energetics 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.| Laser Energetics vs. Northrop Grumman | Laser Energetics vs. Lockheed Martin | Laser Energetics vs. Raytheon Technologies Corp | Laser Energetics vs. L3Harris Technologies |
| Firan Technology vs. BCE Inc | Firan Technology vs. Axiologix | Firan Technology vs. Advanced Info Service | Firan Technology vs. HUMANA INC |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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