Correlation Between Winland Holdings and Firsthand Technology

Can any of the company-specific risk be diversified away by investing in both Winland Holdings and Firsthand 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 Winland Holdings and Firsthand Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Winland Holdings and Firsthand Technology Opportunities, you can compare the effects of market volatilities on Winland Holdings and Firsthand 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 Winland Holdings with a short position of Firsthand Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winland Holdings and Firsthand Technology.

Diversification Opportunities for Winland Holdings and Firsthand Technology

0.0

Correlation Coefficient

Winland Holdings  Firsthand Technology

Pay attention - limited upside

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

Pair Corralation between Winland Holdings and Firsthand Technology

If you would invest  206.00  in Winland Holdings on January 29, 2024 and sell it today you would earn a total of  0.00  from holding Winland Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

Winland Holdings  vs.  Firsthand Technology Opportuni

Winland Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winland Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Winland Holdings is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Firsthand Technology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Firsthand Technology Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in May 2024. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Winland Holdings and Firsthand Technology

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

The idea behind Winland Holdings and Firsthand Technology Opportunities 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.