Correlation Between Freenet AG and American Public
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By analyzing existing cross correlation between freenet AG and American Public Education, you can compare the effects of market volatilities on Freenet AG and American Public 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 Freenet AG with a short position of American Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freenet AG and American Public.
Diversification Opportunities for Freenet AG and American Public
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Freenet and American is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding freenet AG and American Public Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Public Education and Freenet AG 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 freenet AG are associated (or correlated) with American Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Public Education has no effect on the direction of Freenet AG i.e., Freenet AG and American Public go up and down completely randomly.
Pair Corralation between Freenet AG and American Public
Assuming the 90 days trading horizon Freenet AG is expected to generate 13.61 times less return on investment than American Public. But when comparing it to its historical volatility, freenet AG is 3.65 times less risky than American Public. It trades about 0.08 of its potential returns per unit of risk. American Public Education is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,620 in American Public Education on September 13, 2024 and sell it today you would earn a total of 360.00 from holding American Public Education or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
freenet AG vs. American Public Education
Performance |
| Timeline |
| freenet AG |
| American Public Education |
Freenet AG and American Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freenet AG and American Public
The main advantage of trading using opposite Freenet AG and American Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freenet AG position performs unexpectedly, American Public 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 American Public will offset losses from the drop in American Public's long position.| Freenet AG vs. CENTURIA OFFICE REIT | Freenet AG vs. URBAN OUTFITTERS | Freenet AG vs. MI Homes | Freenet AG vs. LANDSEA HOMES P |
| American Public vs. PLAYTIKA HOLDING DL 01 | American Public vs. NorAm Drilling AS | American Public vs. Major Drilling Group | American Public vs. CDL INVESTMENT |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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