Correlation Between Future Fintech and Treehouse Foods
Can any of the company-specific risk be diversified away by investing in both Future Fintech and Treehouse Foods 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 Treehouse Foods 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 Treehouse Foods, you can compare the effects of market volatilities on Future Fintech and Treehouse Foods 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 Treehouse Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Fintech and Treehouse Foods.
Diversification Opportunities for Future Fintech and Treehouse Foods
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Future and Treehouse is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Future Fintech Group and Treehouse Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treehouse Foods 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 Treehouse Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treehouse Foods has no effect on the direction of Future Fintech i.e., Future Fintech and Treehouse Foods go up and down completely randomly.
Pair Corralation between Future Fintech and Treehouse Foods
Given the investment horizon of 90 days Future Fintech Group is expected to under-perform the Treehouse Foods. In addition to that, Future Fintech is 2.87 times more volatile than Treehouse Foods. It trades about -0.05 of its total potential returns per unit of risk. Treehouse Foods is currently generating about -0.07 per unit of volatility. If you would invest 5,203 in Treehouse Foods on March 26, 2025 and sell it today you would lose (3,122) from holding Treehouse Foods or give up 60.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Future Fintech Group vs. Treehouse Foods
Performance |
| Timeline |
| Future Fintech Group |
| Treehouse Foods |
Future Fintech and Treehouse Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Future Fintech and Treehouse Foods
The main advantage of trading using opposite Future Fintech and Treehouse Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Future Fintech position performs unexpectedly, Treehouse Foods 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 Treehouse Foods will offset losses from the drop in Treehouse Foods' long position.| Future Fintech vs. DatChat | Future Fintech vs. MMTEC Inc | Future Fintech vs. Creative Realities | Future Fintech vs. Marin Software |
| Treehouse Foods vs. Lancaster Colony | Treehouse Foods vs. John B Sanfilippo | Treehouse Foods vs. Seneca Foods Corp | Treehouse Foods vs. Post Holdings |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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