Correlation Between Firsthand Technology and Bull Profund
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Bull Profund 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 Bull Profund 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 Bull Profund Investor, you can compare the effects of market volatilities on Firsthand Technology and Bull Profund 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 Bull Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Bull Profund.
Diversification Opportunities for Firsthand Technology and Bull Profund
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Firsthand and Bull is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Bull Profund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bull Profund Investor 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 Bull Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bull Profund Investor has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Bull Profund go up and down completely randomly.
Pair Corralation between Firsthand Technology and Bull Profund
Assuming the 90 days horizon Firsthand Technology Opportunities is expected to generate 2.16 times more return on investment than Bull Profund. However, Firsthand Technology is 2.16 times more volatile than Bull Profund Investor. It trades about 0.22 of its potential returns per unit of risk. Bull Profund Investor is currently generating about 0.06 per unit of risk. If you would invest 394.00 in Firsthand Technology Opportunities on November 7, 2024 and sell it today you would earn a total of 32.00 from holding Firsthand Technology Opportunities or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Bull Profund Investor
Performance |
| Timeline |
| Firsthand Technology |
| Bull Profund Investor |
Firsthand Technology and Bull Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Bull Profund
The main advantage of trading using opposite Firsthand Technology and Bull Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Bull Profund 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 Bull Profund will offset losses from the drop in Bull Profund'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 |
| Bull Profund vs. Commodities Strategy Fund | Bull Profund vs. Investec Emerging Markets | Bull Profund vs. Ashmore Emerging Markets | Bull Profund vs. Mid Cap 15x Strategy |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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