Correlation Between Freedom Holding and Saker Aviation
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Saker Aviation 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 Saker Aviation 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 Saker Aviation Services, you can compare the effects of market volatilities on Freedom Holding and Saker Aviation 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 Saker Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Saker Aviation.
Diversification Opportunities for Freedom Holding and Saker Aviation
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Freedom and Saker is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Saker Aviation Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saker Aviation Services 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 Saker Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saker Aviation Services has no effect on the direction of Freedom Holding i.e., Freedom Holding and Saker Aviation go up and down completely randomly.
Pair Corralation between Freedom Holding and Saker Aviation
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 0.24 times more return on investment than Saker Aviation. However, Freedom Holding Corp is 4.09 times less risky than Saker Aviation. It trades about 0.14 of its potential returns per unit of risk. Saker Aviation Services is currently generating about -0.18 per unit of risk. If you would invest 11,100 in Freedom Holding Corp on August 27, 2024 and sell it today you would earn a total of 647.00 from holding Freedom Holding Corp or generate 5.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. Saker Aviation Services
Performance |
| Timeline |
| Freedom Holding Corp |
| Saker Aviation Services |
Freedom Holding and Saker Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Saker Aviation
The main advantage of trading using opposite Freedom Holding and Saker Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Saker Aviation 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 Saker Aviation will offset losses from the drop in Saker Aviation's long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Saker Aviation vs. Element Solutions | Saker Aviation vs. Orion Engineered Carbons | Saker Aviation vs. Minerals Technologies | Saker Aviation vs. Ingevity 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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