Correlation Between Firan Technology and Canada Goose

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

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

Diversification Opportunities for Firan Technology and Canada Goose

-0.78

Correlation Coefficient

Firan Technology  Canada Goose

Pay attention - limited upside

The 3 months correlation between Firan and Canada is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Canada Goose Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canada Goose Holdings and Firan 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 Firan Technology Group are associated (or correlated) with Canada Goose. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canada Goose Holdings has no effect on the direction of Firan Technology i.e., Firan Technology and Canada Goose go up and down completely randomly.

Pair Corralation between Firan Technology and Canada Goose

Assuming the 90 days trading horizon Firan Technology Group is expected to generate 0.67 times more return on investment than Canada Goose. However, Firan Technology Group is 1.5 times less risky than Canada Goose. It trades about 0.14 of its potential returns per unit of risk. Canada Goose Holdings is currently generating about -0.05 per unit of risk. If you would invest  568.00  in Firan Technology Group on September 26, 2024 and sell it today you would earn a total of  185.00  from holding Firan Technology Group or generate 32.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Firan Technology Group  vs.  Canada Goose Holdings

Firan Technology

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Firan Technology Group are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal technical and fundamental indicators, Firan Technology displayed solid returns over the last few months and may actually be approaching a breakup point.

Canada Goose Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Canada Goose Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Firan Technology and Canada Goose

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

The idea behind Firan Technology Group and Canada Goose Holdings 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.

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 Stocks Directory module to find actively traded stocks across global markets.