Correlation Between Fast Retailing and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Fast Retailing and Futu Holdings 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 Fast Retailing and Futu Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fast Retailing Co and Futu Holdings Limited, you can compare the effects of market volatilities on Fast Retailing and Futu Holdings 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 Fast Retailing with a short position of Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fast Retailing and Futu Holdings.
Diversification Opportunities for Fast Retailing and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fast and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fast Retailing Co and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited and Fast Retailing 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 Fast Retailing Co are associated (or correlated) with Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Fast Retailing i.e., Fast Retailing and Futu Holdings go up and down completely randomly.
Pair Corralation between Fast Retailing and Futu Holdings
If you would invest (100.00) in Futu Holdings Limited on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Futu Holdings Limited or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Fast Retailing Co vs. Futu Holdings Limited
Performance |
| Timeline |
| Fast Retailing |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fast Retailing and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fast Retailing and Futu Holdings
The main advantage of trading using opposite Fast Retailing and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fast Retailing position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Fast Retailing vs. Aritzia | Fast Retailing vs. Boot Barn Holdings | Fast Retailing vs. Guess Inc | Fast Retailing vs. The TJX Companies |
| Futu Holdings vs. Summa Silver Corp | Futu Holdings vs. Digi International | Futu Holdings vs. Perseus Mining Limited | Futu Holdings vs. Summit Materials |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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