Correlation Between Burnham Holdings and Freedom Bank
Can any of the company-specific risk be diversified away by investing in both Burnham Holdings and Freedom Bank 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 Burnham Holdings and Freedom Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burnham Holdings PFD and Freedom Bank of, you can compare the effects of market volatilities on Burnham Holdings and Freedom Bank 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 Burnham Holdings with a short position of Freedom Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burnham Holdings and Freedom Bank.
Diversification Opportunities for Burnham Holdings and Freedom Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burnham and Freedom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burnham Holdings PFD and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank and Burnham Holdings 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 Burnham Holdings PFD are associated (or correlated) with Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of Burnham Holdings i.e., Burnham Holdings and Freedom Bank go up and down completely randomly.
Pair Corralation between Burnham Holdings and Freedom Bank
If you would invest 1,077 in Freedom Bank of on September 14, 2024 and sell it today you would earn a total of 23.00 from holding Freedom Bank of or generate 2.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burnham Holdings PFD vs. Freedom Bank of
Performance |
| Timeline |
| Burnham Holdings PFD |
| Freedom Bank |
Burnham Holdings and Freedom Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burnham Holdings and Freedom Bank
The main advantage of trading using opposite Burnham Holdings and Freedom Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burnham Holdings position performs unexpectedly, Freedom Bank 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 Freedom Bank will offset losses from the drop in Freedom Bank's long position.| Burnham Holdings vs. Freedom Bank of | Burnham Holdings vs. GameStop Corp | Burnham Holdings vs. Western Union Co | Burnham Holdings vs. Contagious Gaming |
| Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Bank of Idaho |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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