Correlation Between Duolingo and Femto Technologies
Can any of the company-specific risk be diversified away by investing in both Duolingo and Femto Technologies 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 Duolingo and Femto Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duolingo and Femto Technologies, you can compare the effects of market volatilities on Duolingo and Femto Technologies 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 Duolingo with a short position of Femto Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duolingo and Femto Technologies.
Diversification Opportunities for Duolingo and Femto Technologies
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Duolingo and Femto is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Duolingo and Femto Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femto Technologies and Duolingo 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 Duolingo are associated (or correlated) with Femto Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femto Technologies has no effect on the direction of Duolingo i.e., Duolingo and Femto Technologies go up and down completely randomly.
Pair Corralation between Duolingo and Femto Technologies
Given the investment horizon of 90 days Duolingo is expected to under-perform the Femto Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Duolingo is 3.36 times less risky than Femto Technologies. The stock trades about -0.41 of its potential returns per unit of risk. The Femto Technologies is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 416.00 in Femto Technologies on March 30, 2025 and sell it today you would lose (63.00) from holding Femto Technologies or give up 15.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
Duolingo vs. Femto Technologies
Performance |
| Timeline |
| Duolingo |
| Femto Technologies |
Duolingo and Femto Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duolingo and Femto Technologies
The main advantage of trading using opposite Duolingo and Femto Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duolingo position performs unexpectedly, Femto Technologies 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 Femto Technologies will offset losses from the drop in Femto Technologies' long position.The idea behind Duolingo and Femto Technologies 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.| Femto Technologies vs. Belden Inc | Femto Technologies vs. Maanshan Iron Steel | Femto Technologies vs. Mattel Inc | Femto Technologies vs. Academy Sports Outdoors |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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