Correlation Between Freedom Bank and U Haul
Can any of the company-specific risk be diversified away by investing in both Freedom Bank and U Haul 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 U Haul 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 U Haul Holding, you can compare the effects of market volatilities on Freedom Bank and U Haul 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 U Haul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and U Haul.
Diversification Opportunities for Freedom Bank and U Haul
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Freedom and UHAL-B is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and U Haul Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Haul Holding 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 U Haul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Haul Holding has no effect on the direction of Freedom Bank i.e., Freedom Bank and U Haul go up and down completely randomly.
Pair Corralation between Freedom Bank and U Haul
Given the investment horizon of 90 days Freedom Bank is expected to generate 2.3 times less return on investment than U Haul. But when comparing it to its historical volatility, Freedom Bank of is 1.74 times less risky than U Haul. It trades about 0.13 of its potential returns per unit of risk. U Haul Holding is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 6,425 in U Haul Holding on September 13, 2024 and sell it today you would earn a total of 330.00 from holding U Haul Holding or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Bank of vs. U Haul Holding
Performance |
| Timeline |
| Freedom Bank |
| U Haul Holding |
Freedom Bank and U Haul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and U Haul
The main advantage of trading using opposite Freedom Bank and U Haul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, U Haul 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 U Haul will offset losses from the drop in U Haul'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 |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |