Correlation Between Future Fintech and Campbell Soup
Can any of the company-specific risk be diversified away by investing in both Future Fintech and Campbell Soup 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 Campbell Soup 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 Campbell Soup, you can compare the effects of market volatilities on Future Fintech and Campbell Soup 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 Campbell Soup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and Campbell Soup.
Diversification Opportunities for Future Fintech and Campbell Soup
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Future and Campbell is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and Campbell Soup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Campbell Soup 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 Campbell Soup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Campbell Soup has no effect on the direction of Future Fintech i.e., Future Fintech and Campbell Soup go up and down completely randomly.
Pair Corralation between Future Fintech and Campbell Soup
Given the investment horizon of 90 days Future Fintech Group is expected to under-perform the Campbell Soup. In addition to that, Future Fintech is 5.01 times more volatile than Campbell Soup. It trades about -0.01 of its total potential returns per unit of risk. Campbell Soup is currently generating about 0.05 per unit of volatility. If you would invest 3,960 in Campbell Soup on August 27, 2024 and sell it today you would earn a total of 569.00 from holding Campbell Soup or generate 14.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. Campbell Soup
Performance |
| Timeline |
| Future Fintech Group |
| Campbell Soup |
Future Fintech and Campbell Soup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and Campbell Soup
The main advantage of trading using opposite Future Fintech and Campbell Soup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, Campbell Soup 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 Campbell Soup will offset losses from the drop in Campbell Soup's long position.| Future Fintech vs. Bit Origin | Future Fintech vs. Laird Superfood | Future Fintech vs. Stryve Foods | Future Fintech vs. Aquagold International |
| Campbell Soup vs. Bellring Brands LLC | Campbell Soup vs. Ingredion Incorporated | Campbell Soup vs. Nomad Foods | Campbell Soup 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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