Correlation Between Future Fintech and Forafric Global
Can any of the company-specific risk be diversified away by investing in both Future Fintech and Forafric Global 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 Future Fintech and Forafric Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Future Fintech Group and Forafric Global PLC, you can compare the effects of market volatilities on Future Fintech and Forafric Global 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 Future Fintech with a short position of Forafric Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and Forafric Global.
Diversification Opportunities for Future Fintech and Forafric Global
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Future and Forafric is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and Forafric Global PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Forafric Global PLC and Future Fintech 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 Future Fintech Group are associated (or correlated) with Forafric Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Forafric Global PLC has no effect on the direction of Future Fintech i.e., Future Fintech and Forafric Global go up and down completely randomly.
Pair Corralation between Future Fintech and Forafric Global
Given the investment horizon of 90 days Future Fintech Group is expected to under-perform the Forafric Global. In addition to that, Future Fintech is 3.76 times more volatile than Forafric Global PLC. It trades about -0.04 of its total potential returns per unit of risk. Forafric Global PLC is currently generating about -0.02 per unit of volatility. If you would invest 1,086 in Forafric Global PLC on January 17, 2025 and sell it today you would lose (234.00) from holding Forafric Global PLC or give up 21.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. Forafric Global PLC
Performance |
| Timeline |
| Future Fintech Group |
| Forafric Global PLC |
Future Fintech and Forafric Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and Forafric Global
The main advantage of trading using opposite Future Fintech and Forafric Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, Forafric Global 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 Forafric Global will offset losses from the drop in Forafric Global's long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| Forafric Global vs. Forafric Global PLC | Forafric Global vs. GrainCorp Limited | Forafric Global vs. Australian Agricultural | Forafric Global vs. Fresh Del Monte |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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