Correlation Between Freedom Holding and JBT Old
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and JBT Old 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 JBT Old 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 JBT Old, you can compare the effects of market volatilities on Freedom Holding and JBT Old 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 JBT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and JBT Old.
Diversification Opportunities for Freedom Holding and JBT Old
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and JBT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and JBT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JBT Old 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 JBT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JBT Old has no effect on the direction of Freedom Holding i.e., Freedom Holding and JBT Old go up and down completely randomly.
Pair Corralation between Freedom Holding and JBT Old
If you would invest 13,463 in Freedom Holding Corp on November 18, 2024 and sell it today you would earn a total of 2,241 from holding Freedom Holding Corp or generate 16.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. JBT Old
Performance |
| Timeline |
| Freedom Holding Corp |
| JBT Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Freedom Holding and JBT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and JBT Old
The main advantage of trading using opposite Freedom Holding and JBT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, JBT Old 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 JBT Old will offset losses from the drop in JBT Old's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| JBT Old vs. Flowserve | JBT Old vs. Franklin Electric Co | JBT Old vs. ITT Inc | JBT Old vs. IDEX Corporation |
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.
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