Correlation Between Freedom Holding and Trustcash Holdings
Can any of the company-specific risk be diversified away by investing in both Freedom Holding and Trustcash 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 Trustcash 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 Trustcash Holdings, you can compare the effects of market volatilities on Freedom Holding and Trustcash 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 Trustcash Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and Trustcash Holdings.
Diversification Opportunities for Freedom Holding and Trustcash Holdings
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Freedom and Trustcash is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and Trustcash Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trustcash 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 Trustcash Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trustcash Holdings has no effect on the direction of Freedom Holding i.e., Freedom Holding and Trustcash Holdings go up and down completely randomly.
Pair Corralation between Freedom Holding and Trustcash Holdings
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 0.53 times more return on investment than Trustcash Holdings. However, Freedom Holding Corp is 1.89 times less risky than Trustcash Holdings. It trades about 0.07 of its potential returns per unit of risk. Trustcash Holdings is currently generating about -0.04 per unit of risk. If you would invest 6,112 in Freedom Holding Corp on August 27, 2024 and sell it today you would earn a total of 5,635 from holding Freedom Holding Corp or generate 92.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Freedom Holding Corp vs. Trustcash Holdings
Performance |
| Timeline |
| Freedom Holding Corp |
| Trustcash Holdings |
Freedom Holding and Trustcash Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and Trustcash Holdings
The main advantage of trading using opposite Freedom Holding and Trustcash Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, Trustcash 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 Trustcash Holdings will offset losses from the drop in Trustcash Holdings' long position.| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
| Trustcash Holdings vs. Park Electrochemical | Trustcash Holdings vs. Innovative Solutions and | Trustcash Holdings vs. Curtiss Wright | Trustcash Holdings vs. National Presto Industries |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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