Correlation Between Firsthand Technology and Intech Managed

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

By analyzing existing cross correlation between Firsthand Technology Opportunities and Intech Managed Volatility, you can compare the effects of market volatilities on Firsthand Technology and Intech Managed 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 Intech Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Intech Managed.

Diversification Opportunities for Firsthand Technology and Intech Managed

0.92

Correlation Coefficient

Firsthand Technology  Intech Managed

Almost no diversification

The 3 months correlation between Firsthand and Intech is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Intech Managed Volatility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intech Managed Volatility 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 Opportunities are associated (or correlated) with Intech Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intech Managed Volatility has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Intech Managed go up and down completely randomly.

Pair Corralation between Firsthand Technology and Intech Managed

Assuming the 90 days horizon Firsthand Technology Opportunities is expected to generate 1.91 times more return on investment than Intech Managed. However, Firsthand Technology is 1.91 times more volatile than Intech Managed Volatility. It trades about 0.17 of its potential returns per unit of risk. Intech Managed Volatility is currently generating about 0.07 per unit of risk. If you would invest  350.00  in Firsthand Technology Opportunities on September 13, 2024 and sell it today you would earn a total of  59.00  from holding Firsthand Technology Opportunities or generate 16.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	98.44%
Values	Daily Returns

Firsthand Technology Opportuni  vs.  Intech Managed Volatility

Firsthand Technology

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Firsthand Technology Opportunities are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Firsthand Technology showed solid returns over the last few months and may actually be approaching a breakup point.

Intech Managed Volatility

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intech Managed Volatility are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Intech Managed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Firsthand Technology and Intech Managed

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

The idea behind Firsthand Technology Opportunities and Intech Managed Volatility 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.