Correlation Between Firan Technology and Algonquin Power
Can any of the company-specific risk be diversified away by investing in both Firan Technology and Algonquin Power 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 Algonquin Power 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 Algonquin Power Utilities, you can compare the effects of market volatilities on Firan Technology and Algonquin Power 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 Algonquin Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Algonquin Power.
Diversification Opportunities for Firan Technology and Algonquin Power
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Firan and Algonquin is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Algonquin Power Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algonquin Power Utilities 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 Algonquin Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algonquin Power Utilities has no effect on the direction of Firan Technology i.e., Firan Technology and Algonquin Power go up and down completely randomly.
Pair Corralation between Firan Technology and Algonquin Power
Assuming the 90 days trading horizon Firan Technology Group is expected to generate 2.91 times more return on investment than Algonquin Power. However, Firan Technology is 2.91 times more volatile than Algonquin Power Utilities. It trades about 0.23 of its potential returns per unit of risk. Algonquin Power Utilities is currently generating about 0.02 per unit of risk. If you would invest 582.00 in Firan Technology Group on September 13, 2024 and sell it today you would earn a total of 173.00 from holding Firan Technology Group or generate 29.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Firan Technology Group vs. Algonquin Power Utilities
Performance |
Timeline |
Firan Technology |
Algonquin Power Utilities |
Firan Technology and Algonquin Power Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Firan Technology and Algonquin Power
The main advantage of trading using opposite Firan Technology and Algonquin Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firan Technology position performs unexpectedly, Algonquin Power 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 Algonquin Power will offset losses from the drop in Algonquin Power's long position.Firan Technology vs. Baylin Technologies | Firan Technology vs. Gatekeeper Systems | Firan Technology vs. iShares Canadian HYBrid | Firan Technology vs. Altagas Cum Red |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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