Correlation Between Futuris and One Step

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

By analyzing existing cross correlation between Futuris Company and One Step Vending, you can compare the effects of market volatilities on Futuris and One Step 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 Futuris with a short position of One Step. Check out your portfolio center. Please also check ongoing floating volatility patterns of Futuris and One Step.

Diversification Opportunities for Futuris and One Step

0.0

Correlation Coefficient

Futuris  One Step

Pay attention - limited upside

The 3 months correlation between Futuris and One is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Futuris Company and One Step Vending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on One Step Vending and Futuris 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 Futuris Company are associated (or correlated) with One Step. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of One Step Vending has no effect on the direction of Futuris i.e., Futuris and One Step go up and down completely randomly.

Pair Corralation between Futuris and One Step

Given the investment horizon of 90 days Futuris Company is expected to generate 1.2 times more return on investment than One Step. However, Futuris is 1.2 times more volatile than One Step Vending. It trades about 0.11 of its potential returns per unit of risk. One Step Vending is currently generating about 0.01 per unit of risk. If you would invest  1.03  in Futuris Company on April 30, 2025 and sell it today you would earn a total of  0.65  from holding Futuris Company or generate 63.11% return on investment over 90 days.

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

Futuris Company  vs.  One Step Vending

Futuris Company

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Futuris Company are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Futuris unveiled solid returns over the last few months and may actually be approaching a breakup point.

One Step Vending

Risk-Adjusted Performance

Very Weak

Over the last 90 days One Step Vending has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite fragile basic indicators, One Step may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Futuris and One Step

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

The idea behind Futuris Company and One Step Vending 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.