Correlation Between Freedom Holding and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Maiden Holdings 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 Maiden Holdings 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 Maiden Holdings, you can compare the effects of market volatilities on Freedom Holding and Maiden Holdings 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 Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Maiden Holdings.
Diversification Opportunities for Freedom Holding and Maiden Holdings
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Freedom and Maiden is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings 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 Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Freedom Holding i.e., Freedom Holding and Maiden Holdings go up and down completely randomly.
Pair Corralation between Freedom Holding and Maiden Holdings
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 1.9 times more return on investment than Maiden Holdings. However, Freedom Holding is 1.9 times more volatile than Maiden Holdings. It trades about 0.02 of its potential returns per unit of risk. Maiden Holdings is currently generating about -0.2 per unit of risk. If you would invest 12,689 in Freedom Holding Corp on January 13, 2025 and sell it today you would lose (51.00) from holding Freedom Holding Corp or give up 0.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Maiden Holdings
Performance |
| Timeline |
| Freedom Holding Corp |
| Maiden Holdings |
Freedom Holding and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Maiden Holdings
The main advantage of trading using opposite Freedom Holding and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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