Correlation Between Future Fintech and AgriFORCE Growing
Can any of the company-specific risk be diversified away by investing in both Future Fintech and AgriFORCE Growing 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 AgriFORCE Growing 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 AgriFORCE Growing Systems, you can compare the effects of market volatilities on Future Fintech and AgriFORCE Growing 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 AgriFORCE Growing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and AgriFORCE Growing.
Diversification Opportunities for Future Fintech and AgriFORCE Growing
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Future and AgriFORCE is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and AgriFORCE Growing Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AgriFORCE Growing Systems 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 AgriFORCE Growing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AgriFORCE Growing Systems has no effect on the direction of Future Fintech i.e., Future Fintech and AgriFORCE Growing go up and down completely randomly.
Pair Corralation between Future Fintech and AgriFORCE Growing
Given the investment horizon of 90 days Future Fintech Group is expected to generate 0.71 times more return on investment than AgriFORCE Growing. However, Future Fintech Group is 1.41 times less risky than AgriFORCE Growing. It trades about -0.02 of its potential returns per unit of risk. AgriFORCE Growing Systems is currently generating about -0.13 per unit of risk. If you would invest 182.00 in Future Fintech Group on August 27, 2024 and sell it today you would lose (142.00) from holding Future Fintech Group or give up 78.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. AgriFORCE Growing Systems
Performance |
| Timeline |
| Future Fintech Group |
| AgriFORCE Growing Systems |
Future Fintech and AgriFORCE Growing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and AgriFORCE Growing
The main advantage of trading using opposite Future Fintech and AgriFORCE Growing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, AgriFORCE Growing 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 AgriFORCE Growing will offset losses from the drop in AgriFORCE Growing's long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| AgriFORCE Growing vs. Bellring Brands LLC | AgriFORCE Growing vs. Ingredion Incorporated | AgriFORCE Growing vs. Nomad Foods | AgriFORCE Growing vs. Post Holdings |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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