Correlation Between Freedom Holding and Cedar Realty
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Cedar Realty 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 Cedar Realty 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 Cedar Realty Trust, you can compare the effects of market volatilities on Freedom Holding and Cedar Realty 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 Cedar Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Cedar Realty.
Diversification Opportunities for Freedom Holding and Cedar Realty
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Freedom and Cedar is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Cedar Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cedar Realty Trust 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 Cedar Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cedar Realty Trust has no effect on the direction of Freedom Holding i.e., Freedom Holding and Cedar Realty go up and down completely randomly.
Pair Corralation between Freedom Holding and Cedar Realty
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 0.83 times more return on investment than Cedar Realty. However, Freedom Holding Corp is 1.2 times less risky than Cedar Realty. It trades about 0.07 of its potential returns per unit of risk. Cedar Realty Trust is currently generating about 0.04 per unit of risk. If you would invest 6,148 in Freedom Holding Corp on August 30, 2024 and sell it today you would earn a total of 5,695 from holding Freedom Holding Corp or generate 92.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Cedar Realty Trust
Performance |
| Timeline |
| Freedom Holding Corp |
| Cedar Realty Trust |
Freedom Holding and Cedar Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Cedar Realty
The main advantage of trading using opposite Freedom Holding and Cedar Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Cedar Realty 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 Cedar Realty will offset losses from the drop in Cedar Realty's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Cedar Realty vs. Saul Centers | Cedar Realty vs. Kimco Realty | Cedar Realty vs. Wheeler Real Estate | Cedar Realty vs. Macerich Company |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |