Correlation Between Firsthand Technology and Jacob Internet
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Jacob Internet 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 Jacob Internet 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 Jacob Internet Fund, you can compare the effects of market volatilities on Firsthand Technology and Jacob Internet 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 Jacob Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Jacob Internet.
Diversification Opportunities for Firsthand Technology and Jacob Internet
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Firsthand and Jacob is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Jacob Internet Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jacob Internet 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 Jacob Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jacob Internet has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Jacob Internet go up and down completely randomly.
Pair Corralation between Firsthand Technology and Jacob Internet
Assuming the 90 days horizon Firsthand Technology Opportunities is expected to under-perform the Jacob Internet. In addition to that, Firsthand Technology is 1.3 times more volatile than Jacob Internet Fund. It trades about -0.04 of its total potential returns per unit of risk. Jacob Internet Fund is currently generating about 0.05 per unit of volatility. If you would invest 412.00 in Jacob Internet Fund on August 29, 2024 and sell it today you would earn a total of 187.00 from holding Jacob Internet Fund or generate 45.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Jacob Internet Fund
Performance |
| Timeline |
| Firsthand Technology |
| Jacob Internet |
Firsthand Technology and Jacob Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Jacob Internet
The main advantage of trading using opposite Firsthand Technology and Jacob Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Jacob Internet 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 Jacob Internet will offset losses from the drop in Jacob Internet'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 |
| Jacob Internet vs. Kinetics Internet Fund | Jacob Internet vs. Internet Ultrasector Profund | Jacob Internet vs. Firsthand Technology Opportunities | Jacob Internet vs. Berkshire Focus |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |