Correlation Between Farmer Bros and Future Fintech
Can any of the company-specific risk be diversified away by investing in both Farmer Bros and Future Fintech 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 Farmer Bros and Future Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Farmer Bros Co and Future Fintech Group, you can compare the effects of market volatilities on Farmer Bros and Future Fintech 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 Farmer Bros with a short position of Future Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Farmer Bros and Future Fintech.
Diversification Opportunities for Farmer Bros and Future Fintech
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Farmer and Future is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Farmer Bros Co and Future Fintech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Future Fintech Group and Farmer Bros 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 Farmer Bros Co are associated (or correlated) with Future Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Future Fintech Group has no effect on the direction of Farmer Bros i.e., Farmer Bros and Future Fintech go up and down completely randomly.
Pair Corralation between Farmer Bros and Future Fintech
Given the investment horizon of 90 days Farmer Bros Co is expected to generate 0.72 times more return on investment than Future Fintech. However, Farmer Bros Co is 1.39 times less risky than Future Fintech. It trades about 0.27 of its potential returns per unit of risk. Future Fintech Group is currently generating about 0.11 per unit of risk. If you would invest 165.00 in Farmer Bros Co on June 2, 2025 and sell it today you would earn a total of 35.00 from holding Farmer Bros Co or generate 21.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Farmer Bros Co vs. Future Fintech Group
Performance |
| Timeline |
| Farmer Bros |
| Future Fintech Group |
Farmer Bros and Future Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Farmer Bros and Future Fintech
The main advantage of trading using opposite Farmer Bros and Future Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Farmer Bros position performs unexpectedly, Future Fintech 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 Future Fintech will offset losses from the drop in Future Fintech's long position.| Farmer Bros vs. Coffee Holding Co | Farmer Bros vs. Bridgford Foods | Farmer Bros vs. Westrock Coffee | Farmer Bros vs. John B Sanfilippo |
| Future Fintech vs. Blackboxstocks | Future Fintech vs. Bit Digital | Future Fintech vs. Canaan Inc | Future Fintech vs. Cyngn Inc |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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