Correlation Between Four Leaf and Futuretech

Can any of the company-specific risk be diversified away by investing in both Four Leaf and Futuretech 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 Four Leaf and Futuretech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Four Leaf Acquisition and Futuretech II Acquisition, you can compare the effects of market volatilities on Four Leaf and Futuretech 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 Four Leaf with a short position of Futuretech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Four Leaf and Futuretech.

Diversification Opportunities for Four Leaf and Futuretech

0.06

Correlation Coefficient

Four Leaf  Futuretech

Significant diversification

The 3 months correlation between Four and Futuretech is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Four Leaf Acquisition and Futuretech II Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Futuretech II Acquisition and Four Leaf 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 Four Leaf Acquisition are associated (or correlated) with Futuretech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Futuretech II Acquisition has no effect on the direction of Four Leaf i.e., Four Leaf and Futuretech go up and down completely randomly.

Pair Corralation between Four Leaf and Futuretech

If you would invest  1,202  in Futuretech II Acquisition on August 20, 2025 and sell it today you would earn a total of  0.00  from holding Futuretech II Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Four Leaf Acquisition  vs.  Futuretech II Acquisition

Four Leaf Acquisition

Risk-Adjusted Performance

Weakest

Over the last 90 days Four Leaf Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Four Leaf is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Futuretech II Acquisition

Risk-Adjusted Performance

Weakest

Over the last 90 days Futuretech II Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Futuretech is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Four Leaf and Futuretech

The main advantage of trading using opposite Four Leaf and Futuretech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Four Leaf position performs unexpectedly, Futuretech 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 Futuretech will offset losses from the drop in Futuretech's long position.

The idea behind Four Leaf Acquisition and Futuretech II Acquisition pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.