Correlation Between Future Fintech and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Future Fintech and NYSE Composite 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 NYSE Composite 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 NYSE Composite, you can compare the effects of market volatilities on Future Fintech and NYSE Composite 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 NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and NYSE Composite.
Diversification Opportunities for Future Fintech and NYSE Composite
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Future and NYSE is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite 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 NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Future Fintech i.e., Future Fintech and NYSE Composite go up and down completely randomly.
Pair Corralation between Future Fintech and NYSE Composite
Given the investment horizon of 90 days Future Fintech Group is expected to under-perform the NYSE Composite. In addition to that, Future Fintech is 5.62 times more volatile than NYSE Composite. It trades about -0.13 of its total potential returns per unit of risk. NYSE Composite is currently generating about -0.18 per unit of volatility. If you would invest 1,821,619 in NYSE Composite on January 29, 2024 and sell it today you would lose (45,292) from holding NYSE Composite or give up 2.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Future Fintech Group vs. NYSE Composite
Performance |
Timeline |
Future Fintech and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Future Fintech Group
Pair trading matchups for Future Fintech
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Future Fintech and NYSE Composite
The main advantage of trading using opposite Future Fintech and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
NYSE Composite vs. Alto Ingredients | NYSE Composite vs. Ryanair Holdings PLC | NYSE Composite vs. Yips Chemical Holdings | NYSE Composite vs. Mesa Air Group |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |