Correlation Between Firan Technology and Natural Grocers

Can any of the company-specific risk be diversified away by investing in both Firan Technology and Natural Grocers 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 Natural Grocers 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 Natural Grocers by, you can compare the effects of market volatilities on Firan Technology and Natural Grocers 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 Natural Grocers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Firan Technology and Natural Grocers.

Diversification Opportunities for Firan Technology and Natural Grocers

-0.91

Correlation Coefficient

Firan Technology  Natural Grocers

Pay attention - limited upside

The 3 months correlation between Firan and Natural is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Firan Technology Group and Natural Grocers by in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natural Grocers by 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 Natural Grocers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natural Grocers by has no effect on the direction of Firan Technology i.e., Firan Technology and Natural Grocers go up and down completely randomly.

Pair Corralation between Firan Technology and Natural Grocers

Assuming the 90 days horizon Firan Technology Group is expected to generate 0.45 times more return on investment than Natural Grocers. However, Firan Technology Group is 2.24 times less risky than Natural Grocers. It trades about 0.2 of its potential returns per unit of risk. Natural Grocers by is currently generating about -0.06 per unit of risk. If you would invest  647.00  in Firan Technology Group on May 4, 2025 and sell it today you would earn a total of  193.00  from holding Firan Technology Group or generate 29.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Firan Technology Group  vs.  Natural Grocers by

Firan Technology

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Firan Technology Group are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting technical and fundamental indicators, Firan Technology reported solid returns over the last few months and may actually be approaching a breakup point.

Natural Grocers by

Risk-Adjusted Performance

Very Weak

Over the last 90 days Natural Grocers by 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 basic indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Firan Technology and Natural Grocers

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

The idea behind Firan Technology Group and Natural Grocers by 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.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.