Correlation Between Future Fintech and JM Smucker
Can any of the company-specific risk be diversified away by investing in both Future Fintech and JM Smucker 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 JM Smucker 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 JM Smucker, you can compare the effects of market volatilities on Future Fintech and JM Smucker 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 JM Smucker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and JM Smucker.
Diversification Opportunities for Future Fintech and JM Smucker
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Future and SJM is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and JM Smucker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JM Smucker 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 JM Smucker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JM Smucker has no effect on the direction of Future Fintech i.e., Future Fintech and JM Smucker go up and down completely randomly.
Pair Corralation between Future Fintech and JM Smucker
Given the investment horizon of 90 days Future Fintech Group is expected to generate 8.04 times more return on investment than JM Smucker. However, Future Fintech is 8.04 times more volatile than JM Smucker. It trades about 0.13 of its potential returns per unit of risk. JM Smucker is currently generating about -0.02 per unit of risk. If you would invest 33.00 in Future Fintech Group on August 28, 2024 and sell it today you would earn a total of 7.00 from holding Future Fintech Group or generate 21.21% 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. JM Smucker
Performance |
| Timeline |
| Future Fintech Group |
| JM Smucker |
Future Fintech and JM Smucker Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and JM Smucker
The main advantage of trading using opposite Future Fintech and JM Smucker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, JM Smucker 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 JM Smucker will offset losses from the drop in JM Smucker's long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| JM Smucker vs. Bellring Brands LLC | JM Smucker vs. Ingredion Incorporated | JM Smucker vs. Nomad Foods | JM Smucker vs. Simply Good 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |