Correlation Between Fnac Darty and Freedom Bank
Can any of the company-specific risk be diversified away by investing in both Fnac Darty and Freedom Bank 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 Fnac Darty and Freedom Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fnac Darty SA and Freedom Bank of, you can compare the effects of market volatilities on Fnac Darty and Freedom Bank 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 Fnac Darty with a short position of Freedom Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fnac Darty and Freedom Bank.
Diversification Opportunities for Fnac Darty and Freedom Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fnac and Freedom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Fnac Darty SA and Freedom Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Bank and Fnac Darty 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 Fnac Darty SA are associated (or correlated) with Freedom Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Bank has no effect on the direction of Fnac Darty i.e., Fnac Darty and Freedom Bank go up and down completely randomly.
Pair Corralation between Fnac Darty and Freedom Bank
If you would invest 982.00 in Freedom Bank of on September 14, 2024 and sell it today you would earn a total of 105.00 from holding Freedom Bank of or generate 10.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 67.42% |
| Values | Daily Returns |
Fnac Darty SA vs. Freedom Bank of
Performance |
| Timeline |
| Fnac Darty SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Freedom Bank |
Fnac Darty and Freedom Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fnac Darty and Freedom Bank
The main advantage of trading using opposite Fnac Darty and Freedom Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fnac Darty position performs unexpectedly, Freedom Bank 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 Freedom Bank will offset losses from the drop in Freedom Bank's long position.| Fnac Darty vs. Freedom Bank of | Fnac Darty vs. Artisan Partners Asset | Fnac Darty vs. Commonwealth Bank of | Fnac Darty vs. Barings BDC |
| Freedom Bank vs. National Capital Bank | Freedom Bank vs. Community Heritage Financial | Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Bank of Idaho |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |