Correlation Between Freedom Holding and 78454LAP5
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By analyzing existing cross correlation between Freedom Holding Corp and SM ENERGY 6625, you can compare the effects of market volatilities on Freedom Holding and 78454LAP5 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 78454LAP5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Holding and 78454LAP5.
Diversification Opportunities for Freedom Holding and 78454LAP5
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Freedom and 78454LAP5 is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and SM ENERGY 6625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SM ENERGY 6625 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 78454LAP5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SM ENERGY 6625 has no effect on the direction of Freedom Holding i.e., Freedom Holding and 78454LAP5 go up and down completely randomly.
Pair Corralation between Freedom Holding and 78454LAP5
Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 1.52 times more return on investment than 78454LAP5. However, Freedom Holding is 1.52 times more volatile than SM ENERGY 6625. It trades about 0.3 of its potential returns per unit of risk. SM ENERGY 6625 is currently generating about -0.29 per unit of risk. 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 | 100.0% |
| Values | Daily Returns |
Freedom Holding Corp vs. SM ENERGY 6625
Performance |
| Timeline |
| Freedom Holding Corp |
| SM ENERGY 6625 |
Freedom Holding and 78454LAP5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Freedom Holding and 78454LAP5
The main advantage of trading using opposite Freedom Holding and 78454LAP5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding position performs unexpectedly, 78454LAP5 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 78454LAP5 will offset losses from the drop in 78454LAP5's long position.| Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey | Freedom Holding vs. Stonex Group |
| 78454LAP5 vs. Bright Scholar Education | 78454LAP5 vs. Sun Country Airlines | 78454LAP5 vs. National CineMedia | 78454LAP5 vs. Delek Logistics Partners |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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