Correlation Between Signing Day and Future Fintech

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

By analyzing existing cross correlation between Signing Day Sports, and Future Fintech Group, you can compare the effects of market volatilities on Signing Day 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 Signing Day with a short position of Future Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Signing Day and Future Fintech.

Diversification Opportunities for Signing Day and Future Fintech

0.41

Correlation Coefficient

Signing Day  Future Fintech

Very weak diversification

The 3 months correlation between Signing and Future is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Signing Day Sports, 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 Signing Day 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 Signing Day Sports, 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 Signing Day i.e., Signing Day and Future Fintech go up and down completely randomly.

Pair Corralation between Signing Day and Future Fintech

Considering the 90-day investment horizon Signing Day Sports, is expected to generate 0.98 times more return on investment than Future Fintech. However, Signing Day Sports, is 1.02 times less risky than Future Fintech. It trades about 0.06 of its potential returns per unit of risk. Future Fintech Group is currently generating about 0.03 per unit of risk. If you would invest  135.00  in Signing Day Sports, on August 1, 2025 and sell it today you would earn a total of  15.00  from holding Signing Day Sports, or generate 11.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Signing Day Sports,  vs.  Future Fintech Group

Signing Day Sports,

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Signing Day Sports, are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain technical and fundamental indicators, Signing Day displayed solid returns over the last few months and may actually be approaching a breakup point.

Future Fintech Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Future Fintech Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent technical and fundamental indicators, Future Fintech may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Signing Day and Future Fintech

The main advantage of trading using opposite Signing Day and Future Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Signing Day 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.

The idea behind Signing Day Sports, and Future Fintech Group 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .