Correlation Between Freedom Bank and Eatware
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and Eatware 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 Freedom Bank and Eatware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Bank of and Eatware, you can compare the effects of market volatilities on Freedom Bank and Eatware 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 Freedom Bank with a short position of Eatware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and Eatware.
Diversification Opportunities for Freedom Bank and Eatware
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Eatware is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and Eatware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eatware and Freedom Bank 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 Freedom Bank of are associated (or correlated) with Eatware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eatware has no effect on the direction of Freedom Bank i.e., Freedom Bank and Eatware go up and down completely randomly.
Pair Corralation between Freedom Bank and Eatware
If you would invest 1,076 in Freedom Bank of on September 13, 2024 and sell it today you would earn a total of 24.00 from holding Freedom Bank of or generate 2.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Freedom Bank of vs. Eatware
Performance |
| Timeline |
| Freedom Bank |
| Eatware |
Freedom Bank and Eatware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and Eatware
The main advantage of trading using opposite Freedom Bank and Eatware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, Eatware 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 Eatware will offset losses from the drop in Eatware's long position.| Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Bank of Idaho |
| Eatware vs. Scandinavian Tobacco Group | Eatware vs. CDW Corp | Eatware vs. Definitive Healthcare Corp | Eatware vs. Sapiens International |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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