Correlation Between Freedom Holding and Hannon Armstrong
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Hannon Armstrong 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 Hannon Armstrong 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 Hannon Armstrong Sustainable, you can compare the effects of market volatilities on Freedom Holding and Hannon Armstrong 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 Hannon Armstrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Hannon Armstrong.
Diversification Opportunities for Freedom Holding and Hannon Armstrong
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Freedom and Hannon is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Hannon Armstrong Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hannon Armstrong Sus 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 Hannon Armstrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hannon Armstrong Sus has no effect on the direction of Freedom Holding i.e., Freedom Holding and Hannon Armstrong go up and down completely randomly.
Pair Corralation between Freedom Holding and Hannon Armstrong
Given the investment horizon of 90 days Freedom Holding is expected to generate 1.51 times less return on investment than Hannon Armstrong. But when comparing it to its historical volatility, Freedom Holding Corp is 1.64 times less risky than Hannon Armstrong. It trades about 0.08 of its potential returns per unit of risk. Hannon Armstrong Sustainable is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,924 in Hannon Armstrong Sustainable on September 1, 2024 and sell it today you would earn a total of 1,212 from holding Hannon Armstrong Sustainable or generate 62.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Hannon Armstrong Sustainable
Performance |
| Timeline |
| Freedom Holding Corp |
| Hannon Armstrong Sus |
Freedom Holding and Hannon Armstrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Hannon Armstrong
The main advantage of trading using opposite Freedom Holding and Hannon Armstrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Hannon Armstrong 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 Hannon Armstrong will offset losses from the drop in Hannon Armstrong's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Hannon Armstrong vs. Equinix | Hannon Armstrong vs. Crown Castle | Hannon Armstrong vs. American Tower Corp | Hannon Armstrong vs. Iron Mountain Incorporated |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |