Correlation Between Firan Technology and Winpak
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Winpak 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 Winpak 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 Winpak, you can compare the effects of market volatilities on Firan Technology and Winpak 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 Winpak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Winpak.
Diversification Opportunities for Firan Technology and Winpak
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Firan and Winpak is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Winpak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winpak 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 Winpak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winpak has no effect on the direction of Firan Technology i.e., Firan Technology and Winpak go up and down completely randomly.
Pair Corralation between Firan Technology and Winpak
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.43 times more return on investment than Winpak. However, Firan Technology is 1.43 times more volatile than Winpak. It trades about 0.22 of its potential returns per unit of risk. Winpak is currently generating about 0.06 per unit of risk. If you would invest 581.00 in Firan Technology Group on September 26, 2024 and sell it today you would earn a total of 172.00 from holding Firan Technology Group or generate 29.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Firan Technology Group vs. Winpak
Performance |
Timeline |
Firan Technology |
Winpak |
Firan Technology and Winpak Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Firan Technology and Winpak
The main advantage of trading using opposite Firan Technology and Winpak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Winpak 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 Winpak will offset losses from the drop in Winpak's long position.Firan Technology vs. AnalytixInsight | Firan Technology vs. Baylin Technologies | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Altagas Cum Red |
Winpak vs. Arizona Gold Silver | Winpak vs. Questor Technology | Winpak vs. Converge Technology Solutions | Winpak vs. Firan Technology Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |