Correlation Between Freedom Bank and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and IHH Healthcare 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 IHH Healthcare 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 IHH Healthcare Berhad, you can compare the effects of market volatilities on Freedom Bank and IHH Healthcare 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 IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and IHH Healthcare.
Diversification Opportunities for Freedom Bank and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad 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 IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Freedom Bank i.e., Freedom Bank and IHH Healthcare go up and down completely randomly.
Pair Corralation between Freedom Bank and IHH Healthcare
If you would invest 1,055 in Freedom Bank of on September 5, 2024 and sell it today you would earn a total of 7.00 from holding Freedom Bank of or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Freedom Bank of vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Freedom Bank |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freedom Bank and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and IHH Healthcare
The main advantage of trading using opposite Freedom Bank and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Freedom Bank vs. Western Asset Global | Freedom Bank vs. Invesco Trust For | Freedom Bank vs. Logan Ridge Finance | Freedom Bank vs. Invesco Advantage MIT |
| IHH Healthcare vs. Cumberland Pharmaceuticals | IHH Healthcare vs. Chiba Bank Ltd | IHH Healthcare vs. Freedom Bank of | IHH Healthcare vs. Teleflex Incorporated |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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