Correlation Between Freedom Bank and CONOCO
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By analyzing existing cross correlation between Freedom Bank of and CONOCO FDG 725, you can compare the effects of market volatilities on Freedom Bank and CONOCO 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 CONOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and CONOCO.
Diversification Opportunities for Freedom Bank and CONOCO
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Freedom and CONOCO is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and CONOCO FDG 725 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONOCO FDG 725 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 CONOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONOCO FDG 725 has no effect on the direction of Freedom Bank i.e., Freedom Bank and CONOCO go up and down completely randomly.
Pair Corralation between Freedom Bank and CONOCO
Given the investment horizon of 90 days Freedom Bank of is expected to generate 1.93 times more return on investment than CONOCO. However, Freedom Bank is 1.93 times more volatile than CONOCO FDG 725. It trades about 0.07 of its potential returns per unit of risk. CONOCO FDG 725 is currently generating about -0.18 per unit of risk. If you would invest 1,016 in Freedom Bank of on September 4, 2024 and sell it today you would earn a total of 46.00 from holding Freedom Bank of or generate 4.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 76.56% |
| Values | Daily Returns |
Freedom Bank of vs. CONOCO FDG 725
Performance |
| Timeline |
| Freedom Bank |
| CONOCO FDG 725 |
Freedom Bank and CONOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Bank and CONOCO
The main advantage of trading using opposite Freedom Bank and CONOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, CONOCO 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 CONOCO will offset losses from the drop in CONOCO'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 |
| CONOCO vs. AmTrust Financial Services | CONOCO vs. Hf Foods Group | CONOCO vs. AMCON Distributing | CONOCO vs. Freedom Bank of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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