Correlation Between Firsthand Technology and Siit Emerging
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Siit Emerging 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 Siit Emerging 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 Siit Emerging Markets, you can compare the effects of market volatilities on Firsthand Technology and Siit Emerging 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 Siit Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Siit Emerging.
Diversification Opportunities for Firsthand Technology and Siit Emerging
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Siit is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Siit Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siit Emerging Markets 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 Siit Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siit Emerging Markets has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Siit Emerging go up and down completely randomly.
Pair Corralation between Firsthand Technology and Siit Emerging
Assuming the 90 days horizon Firsthand Technology Opportunities is expected to generate 2.28 times more return on investment than Siit Emerging. However, Firsthand Technology is 2.28 times more volatile than Siit Emerging Markets. It trades about 0.14 of its potential returns per unit of risk. Siit Emerging Markets is currently generating about -0.14 per unit of risk. If you would invest 361.00 in Firsthand Technology Opportunities on August 29, 2024 and sell it today you would earn a total of 34.00 from holding Firsthand Technology Opportunities or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Siit Emerging Markets
Performance |
| Timeline |
| Firsthand Technology |
| Siit Emerging Markets |
Firsthand Technology and Siit Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Siit Emerging
The main advantage of trading using opposite Firsthand Technology and Siit Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Siit Emerging 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 Siit Emerging will offset losses from the drop in Siit Emerging'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 |
| Siit Emerging vs. Firsthand Technology Opportunities | Siit Emerging vs. Global Technology Portfolio | Siit Emerging vs. Towpath Technology | Siit Emerging vs. Science Technology Fund |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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