Correlation Between LANDSEA HOMES and Freenet AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between LANDSEA HOMES P and freenet AG, you can compare the effects of market volatilities on LANDSEA HOMES and Freenet AG 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 LANDSEA HOMES with a short position of Freenet AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of LANDSEA HOMES and Freenet AG.
Diversification Opportunities for LANDSEA HOMES and Freenet AG
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between LANDSEA and Freenet is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding LANDSEA HOMES P and freenet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on freenet AG and LANDSEA HOMES 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 LANDSEA HOMES P are associated (or correlated) with Freenet AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of freenet AG has no effect on the direction of LANDSEA HOMES i.e., LANDSEA HOMES and Freenet AG go up and down completely randomly.
Pair Corralation between LANDSEA HOMES and Freenet AG
Assuming the 90 days horizon LANDSEA HOMES P is expected to generate 2.84 times more return on investment than Freenet AG. However, LANDSEA HOMES is 2.84 times more volatile than freenet AG. It trades about 0.06 of its potential returns per unit of risk. freenet AG is currently generating about 0.09 per unit of risk. If you would invest 500.00 in LANDSEA HOMES P on September 13, 2024 and sell it today you would earn a total of 485.00 from holding LANDSEA HOMES P or generate 97.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LANDSEA HOMES P vs. freenet AG
Performance |
| Timeline |
| LANDSEA HOMES P |
| freenet AG |
LANDSEA HOMES and Freenet AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LANDSEA HOMES and Freenet AG
The main advantage of trading using opposite LANDSEA HOMES and Freenet AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LANDSEA HOMES position performs unexpectedly, Freenet AG 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 Freenet AG will offset losses from the drop in Freenet AG's long position.| LANDSEA HOMES vs. Superior Plus Corp | LANDSEA HOMES vs. SIVERS SEMICONDUCTORS AB | LANDSEA HOMES vs. NorAm Drilling AS | LANDSEA HOMES vs. BANK HANDLOWY |
| Freenet AG vs. CENTURIA OFFICE REIT | Freenet AG vs. URBAN OUTFITTERS | Freenet AG vs. MI Homes | Freenet AG vs. LANDSEA HOMES P |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |