Correlation Between Future Fintech and Utz Brands
Can any of the company-specific risk be diversified away by investing in both Future Fintech and Utz Brands 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 Utz Brands 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 Utz Brands, you can compare the effects of market volatilities on Future Fintech and Utz Brands 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 Utz Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and Utz Brands.
Diversification Opportunities for Future Fintech and Utz Brands
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Future and Utz is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and Utz Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Utz Brands 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 Utz Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Utz Brands has no effect on the direction of Future Fintech i.e., Future Fintech and Utz Brands go up and down completely randomly.
Pair Corralation between Future Fintech and Utz Brands
Given the investment horizon of 90 days Future Fintech Group is expected to generate 3.48 times more return on investment than Utz Brands. However, Future Fintech is 3.48 times more volatile than Utz Brands. It trades about 0.09 of its potential returns per unit of risk. Utz Brands is currently generating about -0.01 per unit of risk. If you would invest 32.00 in Future Fintech Group on August 31, 2024 and sell it today you would earn a total of 10.00 from holding Future Fintech Group or generate 31.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. Utz Brands
Performance |
| Timeline |
| Future Fintech Group |
| Utz Brands |
Future Fintech and Utz Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and Utz Brands
The main advantage of trading using opposite Future Fintech and Utz Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, Utz Brands 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 Utz Brands will offset losses from the drop in Utz Brands' long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| Utz Brands vs. Post Holdings | Utz Brands vs. J J Snack | Utz Brands vs. The Hain Celestial | Utz Brands vs. Bellring Brands LLC |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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