Correlation Between Freedom Bank and Thermedics
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and Thermedics 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 Thermedics 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 Thermedics, you can compare the effects of market volatilities on Freedom Bank and Thermedics 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 Thermedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and Thermedics.
Diversification Opportunities for Freedom Bank and Thermedics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Thermedics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and Thermedics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermedics 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 Thermedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermedics has no effect on the direction of Freedom Bank i.e., Freedom Bank and Thermedics go up and down completely randomly.
Pair Corralation between Freedom Bank and Thermedics
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 | 0.0% |
| Values | Daily Returns |
Freedom Bank of vs. Thermedics
Performance |
| Timeline |
| Freedom Bank |
| Thermedics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freedom Bank and Thermedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and Thermedics
The main advantage of trading using opposite Freedom Bank and Thermedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, Thermedics 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 Thermedics will offset losses from the drop in Thermedics' 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 |
| Thermedics vs. Universal | Thermedics vs. Molson Coors Brewing | Thermedics vs. Philip Morris International | Thermedics vs. ChampionX |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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