Correlation Between Campbell Soup and Future Fintech
Can any of the company-specific risk be diversified away by investing in both Campbell Soup and Future Fintech 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 Campbell Soup and Future Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Campbell Soup and Future Fintech Group, you can compare the effects of market volatilities on Campbell Soup and Future Fintech 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 Campbell Soup with a short position of Future Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Campbell Soup and Future Fintech.
Diversification Opportunities for Campbell Soup and Future Fintech
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Campbell and Future is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Campbell Soup and Future Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Fintech Group and Campbell Soup 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 Campbell Soup are associated (or correlated) with Future Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Fintech Group has no effect on the direction of Campbell Soup i.e., Campbell Soup and Future Fintech go up and down completely randomly.
Pair Corralation between Campbell Soup and Future Fintech
Considering the 90-day investment horizon Campbell Soup is expected to generate 0.23 times more return on investment than Future Fintech. However, Campbell Soup is 4.38 times less risky than Future Fintech. It trades about 0.04 of its potential returns per unit of risk. Future Fintech Group is currently generating about -0.07 per unit of risk. If you would invest 4,194 in Campbell Soup on August 27, 2024 and sell it today you would earn a total of 335.00 from holding Campbell Soup or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Campbell Soup vs. Future Fintech Group
Performance |
| Timeline |
| Campbell Soup |
| Future Fintech Group |
Campbell Soup and Future Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Campbell Soup and Future Fintech
The main advantage of trading using opposite Campbell Soup and Future Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Campbell Soup position performs unexpectedly, Future Fintech 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 Future Fintech will offset losses from the drop in Future Fintech's long position.| Campbell Soup vs. Bellring Brands LLC | Campbell Soup vs. Ingredion Incorporated | Campbell Soup vs. Nomad Foods | Campbell Soup vs. Post Holdings |
| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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