Correlation Between Freedom Holding and Berkeley Lights
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Berkeley Lights 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 Holding and Berkeley Lights into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Freedom Holding Corp and Berkeley Lights, you can compare the effects of market volatilities on Freedom Holding and Berkeley Lights 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 Holding with a short position of Berkeley Lights. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Berkeley Lights.
Diversification Opportunities for Freedom Holding and Berkeley Lights
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Berkeley is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Berkeley Lights in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkeley Lights and Freedom Holding 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 Holding Corp are associated (or correlated) with Berkeley Lights. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkeley Lights has no effect on the direction of Freedom Holding i.e., Freedom Holding and Berkeley Lights go up and down completely randomly.
Pair Corralation between Freedom Holding and Berkeley Lights
If you would invest 6,999 in Freedom Holding Corp on September 3, 2024 and sell it today you would earn a total of 4,889 from holding Freedom Holding Corp or generate 69.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 0.68% |
| Values | Daily Returns |
Freedom Holding Corp vs. Berkeley Lights
Performance |
| Timeline |
| Freedom Holding Corp |
| Berkeley Lights |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freedom Holding and Berkeley Lights Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Berkeley Lights
The main advantage of trading using opposite Freedom Holding and Berkeley Lights positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Berkeley Lights 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 Berkeley Lights will offset losses from the drop in Berkeley Lights' long position.| Freedom Holding vs. Riot Blockchain | Freedom Holding vs. Marathon Digital Holdings | Freedom Holding vs. Applied Blockchain | Freedom Holding vs. Hut 8 Corp |
| Berkeley Lights vs. Genfit | Berkeley Lights vs. Corporacion America Airports | Berkeley Lights vs. Grupo Aeroportuario del | Berkeley Lights vs. Inhibrx |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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