Correlation Between First Foods and FalconStor Software

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

Diversification Opportunities for First Foods and FalconStor Software

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between First and FalconStor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Foods Group and FalconStor Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FalconStor Software and First Foods 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 First Foods Group are associated (or correlated) with FalconStor Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FalconStor Software has no effect on the direction of First Foods i.e., First Foods and FalconStor Software go up and down completely randomly.

Pair Corralation between First Foods and FalconStor Software

If you would invest  0.02  in First Foods Group on September 1, 2025 and sell it today you would earn a total of  0.00  from holding First Foods Group or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

First Foods Group  vs.  FalconStor Software

 Performance 
       Timeline  
First Foods Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days First Foods Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, First Foods is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.
FalconStor Software 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days FalconStor Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

First Foods and FalconStor Software Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with First Foods and FalconStor Software

The main advantage of trading using opposite First Foods and FalconStor Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Foods position performs unexpectedly, FalconStor Software 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 FalconStor Software will offset losses from the drop in FalconStor Software's long position.
The idea behind First Foods Group and FalconStor Software 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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