Correlation Between Firsthand Technology and Chicago Atlantic

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

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

Diversification Opportunities for Firsthand Technology and Chicago Atlantic

-0.39

Correlation Coefficient

Firsthand Technology  Chicago Atlantic

Very good diversification

The 3 months correlation between Firsthand and Chicago is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Value and Chicago Atlantic BDC, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chicago Atlantic BDC, and Firsthand 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 Firsthand Technology Value are associated (or correlated) with Chicago Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chicago Atlantic BDC, has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Chicago Atlantic go up and down completely randomly.

Pair Corralation between Firsthand Technology and Chicago Atlantic

If you would invest  62.00  in Firsthand Technology Value on September 22, 2024 and sell it today you would earn a total of  0.00  from holding Firsthand Technology Value or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Firsthand Technology Value  vs.  Chicago Atlantic BDC,

Firsthand Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Firsthand Technology Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound basic indicators, Firsthand Technology is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Chicago Atlantic BDC,

Risk-Adjusted Performance

9 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Chicago Atlantic BDC, are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very weak technical and fundamental indicators, Chicago Atlantic may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Firsthand Technology and Chicago Atlantic

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

The idea behind Firsthand Technology Value and Chicago Atlantic BDC, 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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.