Correlation Between Cirmaker Technology and FLT Old

Can any of the company-specific risk be diversified away by investing in both Cirmaker Technology and FLT Old 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 Cirmaker Technology and FLT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cirmaker Technology and FLT Old, you can compare the effects of market volatilities on Cirmaker Technology and FLT Old 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 Cirmaker Technology with a short position of FLT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cirmaker Technology and FLT Old.

Diversification Opportunities for Cirmaker Technology and FLT Old

-0.73

Correlation Coefficient

Cirmaker Technology  FLT Old

Pay attention - limited upside

The 3 months correlation between Cirmaker and FLT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cirmaker Technology and FLT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLT Old and Cirmaker 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 Cirmaker Technology are associated (or correlated) with FLT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLT Old has no effect on the direction of Cirmaker Technology i.e., Cirmaker Technology and FLT Old go up and down completely randomly.

Pair Corralation between Cirmaker Technology and FLT Old

If you would invest  4.50  in Cirmaker Technology on October 11, 2024 and sell it today you would earn a total of  0.90  from holding Cirmaker Technology or generate 20.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	5.0%
Values	Daily Returns

Cirmaker Technology  vs.  FLT Old

Cirmaker Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cirmaker Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward-looking signals, Cirmaker Technology is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

FLT Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FLT Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, FLT Old is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Cirmaker Technology and FLT Old

The main advantage of trading using opposite Cirmaker Technology and FLT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cirmaker Technology position performs unexpectedly, FLT Old 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 FLT Old will offset losses from the drop in FLT Old's long position.

The idea behind Cirmaker Technology and FLT Old pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.