Correlation Between Champion Iron and Firan Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Champion Iron 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 Champion Iron and Firan Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Champion Iron and Firan Technology Group, you can compare the effects of market volatilities on Champion Iron 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 Champion Iron with a short position of Firan Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Champion Iron and Firan Technology.

Diversification Opportunities for Champion Iron and Firan Technology

-0.44
  Correlation Coefficient

Very good diversification

The 3 months correlation between Champion and Firan is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Champion Iron and Firan Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Firan Technology and Champion Iron 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 Champion Iron 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 Champion Iron i.e., Champion Iron and Firan Technology go up and down completely randomly.

Pair Corralation between Champion Iron and Firan Technology

Assuming the 90 days trading horizon Champion Iron is expected to generate 0.97 times more return on investment than Firan Technology. However, Champion Iron is 1.03 times less risky than Firan Technology. It trades about 0.22 of its potential returns per unit of risk. Firan Technology Group is currently generating about -0.07 per unit of risk. If you would invest  401.00  in Champion Iron on September 6, 2025 and sell it today you would earn a total of  148.00  from holding Champion Iron or generate 36.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Champion Iron  vs.  Firan Technology Group

 Performance 
       Timeline  
Champion Iron 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Champion Iron are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Champion Iron displayed solid returns over the last few months and may actually be approaching a breakup point.
Firan Technology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
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 latest abnormal performance, the Stock's technical and fundamental indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Champion Iron and Firan Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Champion Iron and Firan Technology

The main advantage of trading using opposite Champion Iron and Firan Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Champion Iron 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 Champion Iron 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.
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

Other Complementary Tools

USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets