Correlation Between Freedom Holding and SHUAA Partners
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and SHUAA Partners 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 SHUAA Partners 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 SHUAA Partners Acquisition, you can compare the effects of market volatilities on Freedom Holding and SHUAA Partners 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 SHUAA Partners. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and SHUAA Partners.
Diversification Opportunities for Freedom Holding and SHUAA Partners
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Freedom and SHUAA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and SHUAA Partners Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHUAA Partners Acqui 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 SHUAA Partners. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHUAA Partners Acqui has no effect on the direction of Freedom Holding i.e., Freedom Holding and SHUAA Partners go up and down completely randomly.
Pair Corralation between Freedom Holding and SHUAA Partners
If you would invest 11,586 in Freedom Holding Corp on September 12, 2024 and sell it today you would earn a total of 1,338 from holding Freedom Holding Corp or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Freedom Holding Corp vs. SHUAA Partners Acquisition
Performance |
| Timeline |
| Freedom Holding Corp |
| SHUAA Partners Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Freedom Holding and SHUAA Partners Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and SHUAA Partners
The main advantage of trading using opposite Freedom Holding and SHUAA Partners positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, SHUAA Partners 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 SHUAA Partners will offset losses from the drop in SHUAA Partners' long position.| Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey | Freedom Holding vs. Stonex Group |
| SHUAA Partners vs. Asbury Automotive Group | SHUAA Partners vs. Thor Industries | SHUAA Partners vs. Lululemon Athletica | SHUAA Partners vs. LB Foster |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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