Correlation Between Firan Technology and OPEN HOUSE

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

By analyzing existing cross correlation between Firan Technology Group and OPEN HOUSE GROUP, you can compare the effects of market volatilities on Firan Technology and OPEN HOUSE 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 Firan Technology with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and OPEN HOUSE.

Diversification Opportunities for Firan Technology and OPEN HOUSE

0.53

Correlation Coefficient

Firan Technology  OPEN HOUSE

Very weak diversification

The 3 months correlation between Firan and OPEN is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and Firan 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 Firan Technology Group are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of Firan Technology i.e., Firan Technology and OPEN HOUSE go up and down completely randomly.

Pair Corralation between Firan Technology and OPEN HOUSE

Assuming the 90 days trading horizon Firan Technology Group is expected to generate 1.16 times more return on investment than OPEN HOUSE. However, Firan Technology is 1.16 times more volatile than OPEN HOUSE GROUP. It trades about 0.1 of its potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.04 per unit of risk. If you would invest  238.00  in Firan Technology Group on March 29, 2025 and sell it today you would earn a total of  477.00  from holding Firan Technology Group or generate 200.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Firan Technology Group  vs.  OPEN HOUSE GROUP

Firan Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Firan Technology Group are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Firan Technology unveiled solid returns over the last few months and may actually be approaching a breakup point.

OPEN HOUSE GROUP

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in OPEN HOUSE GROUP are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, OPEN HOUSE may actually be approaching a critical reversion point that can send shares even higher in July 2025.

Pair Trading with Firan Technology and OPEN HOUSE

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

The idea behind Firan Technology Group and OPEN HOUSE 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..