Correlation Between Freedom Holding and PennantPark Floating
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and PennantPark Floating 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 PennantPark Floating 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 PennantPark Floating Rate, you can compare the effects of market volatilities on Freedom Holding and PennantPark Floating 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 PennantPark Floating. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and PennantPark Floating.
Diversification Opportunities for Freedom Holding and PennantPark Floating
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Freedom and PennantPark is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and PennantPark Floating Rate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PennantPark Floating Rate 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 PennantPark Floating. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PennantPark Floating Rate has no effect on the direction of Freedom Holding i.e., Freedom Holding and PennantPark Floating go up and down completely randomly.
Pair Corralation between Freedom Holding and PennantPark Floating
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 2.17 times more return on investment than PennantPark Floating. However, Freedom Holding is 2.17 times more volatile than PennantPark Floating Rate. It trades about 0.1 of its potential returns per unit of risk. PennantPark Floating Rate is currently generating about 0.05 per unit of risk. If you would invest 8,175 in Freedom Holding Corp on August 29, 2024 and sell it today you would earn a total of 3,563 from holding Freedom Holding Corp or generate 43.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. PennantPark Floating Rate
Performance |
| Timeline |
| Freedom Holding Corp |
| PennantPark Floating Rate |
Freedom Holding and PennantPark Floating Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and PennantPark Floating
The main advantage of trading using opposite Freedom Holding and PennantPark Floating positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, PennantPark Floating 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 PennantPark Floating will offset losses from the drop in PennantPark Floating's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| PennantPark Floating vs. Carlyle Group | PennantPark Floating vs. TPG Inc | PennantPark Floating vs. Carlyle Secured Lending | PennantPark Floating vs. Brookfield Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |