Correlation Between Firsthand Technology and Aggressive Growth
Can any of the company-specific risk be diversified away by investing in both Firsthand Technology and Aggressive Growth 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 Aggressive Growth 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 Aggressive Growth Allocation, you can compare the effects of market volatilities on Firsthand Technology and Aggressive Growth 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 Aggressive Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firsthand Technology and Aggressive Growth.
Diversification Opportunities for Firsthand Technology and Aggressive Growth
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Firsthand and Aggressive is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Firsthand Technology Opportuni and Aggressive Growth Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Growth 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 Aggressive Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Growth has no effect on the direction of Firsthand Technology i.e., Firsthand Technology and Aggressive Growth go up and down completely randomly.
Pair Corralation between Firsthand Technology and Aggressive Growth
Assuming the 90 days horizon Firsthand Technology Opportunities is expected to generate 2.7 times more return on investment than Aggressive Growth. However, Firsthand Technology is 2.7 times more volatile than Aggressive Growth Allocation. It trades about 0.27 of its potential returns per unit of risk. Aggressive Growth Allocation is currently generating about 0.34 per unit of risk. If you would invest 396.00 in Firsthand Technology Opportunities on April 26, 2025 and sell it today you would earn a total of 108.00 from holding Firsthand Technology Opportunities or generate 27.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Firsthand Technology Opportuni vs. Aggressive Growth Allocation
Performance |
| Timeline |
| Firsthand Technology |
| Aggressive Growth |
Firsthand Technology and Aggressive Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Firsthand Technology and Aggressive Growth
The main advantage of trading using opposite Firsthand Technology and Aggressive Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Firsthand Technology position performs unexpectedly, Aggressive Growth 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 Aggressive Growth will offset losses from the drop in Aggressive Growth's long position.| Firsthand Technology vs. Berkshire Focus | Firsthand Technology vs. Red Oak Technology | Firsthand Technology vs. Jacob Internet Fund | Firsthand Technology vs. Kinetics Internet Fund |
| Aggressive Growth vs. Wilmington Diversified Income | Aggressive Growth vs. Wells Fargo Diversified | Aggressive Growth vs. Global Diversified Income | Aggressive Growth vs. Columbia Diversified Equity |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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