Correlation Between Queens Road and Firan Technology

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

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

Diversification Opportunities for Queens Road and Firan Technology

0.47

Correlation Coefficient

Queens Road  Firan Technology

Very weak diversification

The 3 months correlation between Queens and Firan is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Queens Road Capital and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Queens Road 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 Queens Road Capital 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 Queens Road i.e., Queens Road and Firan Technology go up and down completely randomly.

Pair Corralation between Queens Road and Firan Technology

Assuming the 90 days trading horizon Queens Road Capital is expected to under-perform the Firan Technology. In addition to that, Queens Road is 1.11 times more volatile than Firan Technology Group. It trades about -0.11 of its total potential returns per unit of risk. Firan Technology Group is currently generating about 0.01 per unit of volatility. If you would invest  719.00  in Firan Technology Group on December 22, 2024 and sell it today you would earn a total of  2.00  from holding Firan Technology Group or generate 0.28% return on investment over 90 days.

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

Queens Road Capital  vs.  Firan Technology Group

Queens Road Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Queens Road Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Firan Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Firan Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Firan Technology is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Queens Road and Firan Technology

The main advantage of trading using opposite Queens Road and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Queens Road 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.

The idea behind Queens Road Capital and Firan Technology Group 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.