Correlation Between Future Park and SAF Special

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

By analyzing existing cross correlation between Future Park Leasehold and SAF Special Steel, you can compare the effects of market volatilities on Future Park and SAF Special 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 Park with a short position of SAF Special. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Park and SAF Special.

Diversification Opportunities for Future Park and SAF Special

0.0

Correlation Coefficient

Future Park  SAF Special

Pay attention - limited upside

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

Pair Corralation between Future Park and SAF Special

Assuming the 90 days trading horizon Future Park Leasehold is expected to under-perform the SAF Special. In addition to that, Future Park is 5.02 times more volatile than SAF Special Steel. It trades about -0.13 of its total potential returns per unit of risk. SAF Special Steel is currently generating about 0.04 per unit of volatility. If you would invest  49.00  in SAF Special Steel on December 30, 2024 and sell it today you would earn a total of  2.00  from holding SAF Special Steel or generate 4.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

Future Park Leasehold  vs.  SAF Special Steel

Future Park Leasehold

Risk-Adjusted Performance

Very Weak

Over the last 90 days Future Park Leasehold has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

SAF Special Steel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in SAF Special Steel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent technical and fundamental indicators, SAF Special is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Future Park and SAF Special

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

The idea behind Future Park Leasehold and SAF Special Steel 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.