Correlation Between Futuretech and Concord New
Can any of the company-specific risk be diversified away by investing in both Futuretech and Concord New 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 Futuretech and Concord New into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Futuretech II Acquisition and Concord New Energy, you can compare the effects of market volatilities on Futuretech and Concord New 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 Futuretech with a short position of Concord New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Futuretech and Concord New.
Diversification Opportunities for Futuretech and Concord New
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Futuretech and Concord is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Futuretech II Acquisition and Concord New Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concord New Energy and Futuretech 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 Futuretech II Acquisition are associated (or correlated) with Concord New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concord New Energy has no effect on the direction of Futuretech i.e., Futuretech and Concord New go up and down completely randomly.
Pair Corralation between Futuretech and Concord New
Given the investment horizon of 90 days Futuretech is expected to generate 2.01 times less return on investment than Concord New. But when comparing it to its historical volatility, Futuretech II Acquisition is 4.07 times less risky than Concord New. It trades about 0.02 of its potential returns per unit of risk. Concord New Energy is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Concord New Energy on November 3, 2024 and sell it today you would lose (1.00) from holding Concord New Energy or give up 12.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Futuretech II Acquisition vs. Concord New Energy
Performance |
| Timeline |
| Futuretech II Acquisition |
| Concord New Energy |
Futuretech and Concord New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Futuretech and Concord New
The main advantage of trading using opposite Futuretech and Concord New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Futuretech position performs unexpectedly, Concord New 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 Concord New will offset losses from the drop in Concord New's long position.| Futuretech vs. Bellevue Life Sciences | Futuretech vs. Manaris Corp | Futuretech vs. AlphaTime Acquisition Corp | Futuretech vs. Embrace Change Acquisition |
| Concord New vs. Southwest Airlines | Concord New vs. Boston Omaha Corp | Concord New vs. flyExclusive, | Concord New vs. Sun Country Airlines |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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