Correlation Between Tucows and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Tucows 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 Tucows and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tucows Inc and Firan Technology Group, you can compare the effects of market volatilities on Tucows 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 Tucows with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tucows and Firan Technology.
Diversification Opportunities for Tucows and Firan Technology
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tucows and Firan is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tucows Inc and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Tucows 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 Tucows Inc 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 Tucows i.e., Tucows and Firan Technology go up and down completely randomly.
Pair Corralation between Tucows and Firan Technology
Assuming the 90 days horizon Tucows Inc is expected to under-perform the Firan Technology. In addition to that, Tucows is 2.09 times more volatile than Firan Technology Group. It trades about -0.03 of its total potential returns per unit of risk. Firan Technology Group is currently generating about 0.16 per unit of volatility. If you would invest 517.00 in Firan Technology Group on September 2, 2024 and sell it today you would earn a total of 213.00 from holding Firan Technology Group or generate 41.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tucows Inc vs. Firan Technology Group
Performance |
| Timeline |
| Tucows Inc |
| Firan Technology |
Tucows and Firan Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tucows and Firan Technology
The main advantage of trading using opposite Tucows and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tucows 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.| Tucows vs. TECSYS Inc | Tucows vs. Descartes Systems Group | Tucows vs. Enghouse Systems | Tucows vs. Evertz Technologies Limited |
| Firan Technology vs. Hammond Power Solutions | Firan Technology vs. Questor Technology | Firan Technology vs. Vecima Networks | Firan Technology vs. Magellan Aerospace |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |