Correlation Between Firsthand Technology and Bruce Fund

Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Bruce Fund 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 Bruce Fund 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 Bruce Fund Bruce, you can compare the effects of market volatilities on Firsthand Technology and Bruce Fund 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 Bruce Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Bruce Fund.

Diversification Opportunities for Firsthand Technology and Bruce Fund

-0.4

Correlation Coefficient

Firsthand Technology  Bruce Fund

Very good diversification

The 3 months correlation between Firsthand and Bruce is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Bruce Fund Bruce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bruce Fund Bruce 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 Bruce Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bruce Fund Bruce has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Bruce Fund go up and down completely randomly.

Pair Corralation between Firsthand Technology and Bruce Fund

Assuming the 90 days horizon Firsthand Technology Opportunities is expected to generate 3.03 times more return on investment than Bruce Fund. However, Firsthand Technology is 3.03 times more volatile than Bruce Fund Bruce. It trades about 0.16 of its potential returns per unit of risk. Bruce Fund Bruce is currently generating about -0.1 per unit of risk. If you would invest  350.00  in Firsthand Technology Opportunities on September 15, 2024 and sell it today you would earn a total of  55.00  from holding Firsthand Technology Opportunities or generate 15.71% return on investment over 90 days.

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

Firsthand Technology Opportuni  vs.  Bruce Fund Bruce

Firsthand Technology

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Firsthand Technology Opportunities are ranked lower than 12 (%) 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.

Bruce Fund Bruce

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bruce Fund Bruce has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Bruce Fund 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 Bruce Fund

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

The idea behind Firsthand Technology Opportunities and Bruce Fund Bruce 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.