Correlation Between Boston Beer and Futu Holdings
Can any of the company-specific risk be diversified away by investing in both Boston Beer and Futu Holdings 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 Boston Beer and Futu Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Beer and Futu Holdings Limited, you can compare the effects of market volatilities on Boston Beer and Futu Holdings 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 Boston Beer with a short position of Futu Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Beer and Futu Holdings.
Diversification Opportunities for Boston Beer and Futu Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Boston and Futu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Boston Beer and Futu Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futu Holdings Limited and Boston Beer 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 Boston Beer are associated (or correlated) with Futu Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futu Holdings Limited has no effect on the direction of Boston Beer i.e., Boston Beer and Futu Holdings go up and down completely randomly.
Pair Corralation between Boston Beer and Futu Holdings
If you would invest 29,092 in Boston Beer on September 15, 2024 and sell it today you would earn a total of 2,409 from holding Boston Beer or generate 8.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Boston Beer vs. Futu Holdings Limited
Performance |
| Timeline |
| Boston Beer |
| Futu Holdings Limited |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Boston Beer and Futu Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Beer and Futu Holdings
The main advantage of trading using opposite Boston Beer and Futu Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Beer position performs unexpectedly, Futu Holdings 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 Futu Holdings will offset losses from the drop in Futu Holdings' long position.| Boston Beer vs. Fomento Economico Mexicano | Boston Beer vs. Carlsberg AS | Boston Beer vs. Molson Coors Beverage | Boston Beer vs. Molson Coors Brewing |
| Futu Holdings vs. Scandinavian Tobacco Group | Futu Holdings vs. Aegon NV ADR | Futu Holdings vs. Japan Tobacco ADR | Futu Holdings vs. Boston Beer |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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