Correlation Between Firsthand Technology and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Angel Oak 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 Firsthand Technology and Angel Oak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Firsthand Technology Opportunities and Angel Oak Core, you can compare the effects of market volatilities on Firsthand Technology and Angel Oak 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 Firsthand Technology with a short position of Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Angel Oak.
Diversification Opportunities for Firsthand Technology and Angel Oak
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Firsthand and Angel is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Angel Oak Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Core and Firsthand 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 Firsthand Technology Opportunities are associated (or correlated) with Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Core has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Angel Oak go up and down completely randomly.
Pair Corralation between Firsthand Technology and Angel Oak
If you would invest 841.00 in Angel Oak Core on September 14, 2024 and sell it today you would earn a total of 0.00 from holding Angel Oak Core or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.37% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Angel Oak Core
Performance |
| Timeline |
| Firsthand Technology |
| Angel Oak Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Firsthand Technology and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Angel Oak
The main advantage of trading using opposite Firsthand Technology and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
| Angel Oak vs. Firsthand Technology Opportunities | Angel Oak vs. Science Technology Fund | Angel Oak vs. Towpath Technology | Angel Oak vs. Technology Ultrasector Profund |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |