Correlation Between Cassiar Gold and Firan Technology
Can any of the company-specific risk be diversified away by investing in both Cassiar Gold and Firan Technology 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 Cassiar Gold and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cassiar Gold Corp and Firan Technology Group, you can compare the effects of market volatilities on Cassiar Gold and Firan Technology 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 Cassiar Gold with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cassiar Gold and Firan Technology.
Diversification Opportunities for Cassiar Gold and Firan Technology
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cassiar and Firan is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cassiar Gold Corp and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Cassiar Gold 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 Cassiar Gold Corp are associated (or correlated) with Firan Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Firan Technology has no effect on the direction of Cassiar Gold i.e., Cassiar Gold and Firan Technology go up and down completely randomly.
Pair Corralation between Cassiar Gold and Firan Technology
Assuming the 90 days trading horizon Cassiar Gold Corp is expected to generate 2.04 times more return on investment than Firan Technology. However, Cassiar Gold is 2.04 times more volatile than Firan Technology Group. It trades about 0.0 of its potential returns per unit of risk. Firan Technology Group is currently generating about 0.0 per unit of risk. If you would invest 21.00 in Cassiar Gold Corp on December 4, 2024 and sell it today you would lose (1.00) from holding Cassiar Gold Corp or give up 4.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cassiar Gold Corp vs. Firan Technology Group
Performance |
Timeline |
Cassiar Gold Corp |
Firan Technology |
Cassiar Gold and Firan Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cassiar Gold and Firan Technology
The main advantage of trading using opposite Cassiar Gold and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cassiar Gold position performs unexpectedly, Firan Technology 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 Firan Technology will offset losses from the drop in Firan Technology's long position.Cassiar Gold vs. Verizon Communications CDR | Cassiar Gold vs. Nicola Mining | Cassiar Gold vs. Kootenay Silver | Cassiar Gold vs. Quipt Home Medical |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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