Correlation Between Future Fintech and General Mills
Can any of the company-specific risk be diversified away by investing in both Future Fintech and General Mills 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 General Mills 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 General Mills, you can compare the effects of market volatilities on Future Fintech and General Mills 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 General Mills. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and General Mills.
Diversification Opportunities for Future Fintech and General Mills
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Future and General is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and General Mills in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Mills 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 General Mills. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Mills has no effect on the direction of Future Fintech i.e., Future Fintech and General Mills go up and down completely randomly.
Pair Corralation between Future Fintech and General Mills
Given the investment horizon of 90 days Future Fintech Group is expected to generate 8.29 times more return on investment than General Mills. However, Future Fintech is 8.29 times more volatile than General Mills. It trades about 0.15 of its potential returns per unit of risk. General Mills is currently generating about -0.1 per unit of risk. If you would invest 33.00 in Future Fintech Group on August 31, 2024 and sell it today you would earn a total of 9.00 from holding Future Fintech Group or generate 27.27% 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. General Mills
Performance |
| Timeline |
| Future Fintech Group |
| General Mills |
Future Fintech and General Mills Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and General Mills
The main advantage of trading using opposite Future Fintech and General Mills positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, General Mills 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 General Mills will offset losses from the drop in General Mills' long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| General Mills vs. Campbell Soup | General Mills vs. Kraft Heinz Co | General Mills vs. ConAgra Foods | General Mills vs. Hormel Foods |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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