Correlation Between Future Fintech and Hormel Foods
Can any of the company-specific risk be diversified away by investing in both Future Fintech and Hormel Foods 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 Hormel Foods 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 Hormel Foods, you can compare the effects of market volatilities on Future Fintech and Hormel Foods 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 Hormel Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and Hormel Foods.
Diversification Opportunities for Future Fintech and Hormel Foods
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Future and Hormel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and Hormel Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hormel Foods 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 Hormel Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hormel Foods has no effect on the direction of Future Fintech i.e., Future Fintech and Hormel Foods go up and down completely randomly.
Pair Corralation between Future Fintech and Hormel Foods
Given the investment horizon of 90 days Future Fintech Group is expected to generate 8.26 times more return on investment than Hormel Foods. However, Future Fintech is 8.26 times more volatile than Hormel Foods. It trades about 0.13 of its potential returns per unit of risk. Hormel Foods is currently generating about 0.14 per unit of risk. If you would invest 34.00 in Future Fintech Group on August 30, 2024 and sell it today you would earn a total of 8.00 from holding Future Fintech Group or generate 23.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. Hormel Foods
Performance |
| Timeline |
| Future Fintech Group |
| Hormel Foods |
Future Fintech and Hormel Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and Hormel Foods
The main advantage of trading using opposite Future Fintech and Hormel Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, Hormel Foods 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 Hormel Foods will offset losses from the drop in Hormel Foods' long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| Hormel Foods vs. Campbell Soup | Hormel Foods vs. General Mills | Hormel Foods vs. Kellanova | Hormel Foods vs. Lamb Weston 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |