Correlation Between 06405LAC5 and Freedom Holding
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By analyzing existing cross correlation between BK 5224 21 NOV 25 and Freedom Holding Corp, you can compare the effects of market volatilities on 06405LAC5 and Freedom Holding 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 06405LAC5 with a short position of Freedom Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 06405LAC5 and Freedom Holding.
Diversification Opportunities for 06405LAC5 and Freedom Holding
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 06405LAC5 and Freedom is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding BK 5224 21 NOV 25 and Freedom Holding Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freedom Holding Corp and 06405LAC5 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 BK 5224 21 NOV 25 are associated (or correlated) with Freedom Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freedom Holding Corp has no effect on the direction of 06405LAC5 i.e., 06405LAC5 and Freedom Holding go up and down completely randomly.
Pair Corralation between 06405LAC5 and Freedom Holding
Assuming the 90 days trading horizon BK 5224 21 NOV 25 is expected to under-perform the Freedom Holding. But the bond apears to be less risky and, when comparing its historical volatility, BK 5224 21 NOV 25 is 6.65 times less risky than Freedom Holding. The bond trades about -0.19 of its potential returns per unit of risk. The Freedom Holding Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 10,459 in Freedom Holding Corp on September 3, 2024 and sell it today you would earn a total of 1,429 from holding Freedom Holding Corp or generate 13.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.0% |
| Values | Daily Returns |
BK 5224 21 NOV 25 vs. Freedom Holding Corp
Performance |
| Timeline |
| BK 5224 21 |
| Freedom Holding Corp |
06405LAC5 and Freedom Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 06405LAC5 and Freedom Holding
The main advantage of trading using opposite 06405LAC5 and Freedom Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 06405LAC5 position performs unexpectedly, Freedom Holding 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 Holding will offset losses from the drop in Freedom Holding's long position.| 06405LAC5 vs. AEP TEX INC | 06405LAC5 vs. US BANK NATIONAL | 06405LAC5 vs. MetLife | 06405LAC5 vs. Brera Holdings PLC |
| Freedom Holding vs. Riot Blockchain | Freedom Holding vs. Marathon Digital Holdings | Freedom Holding vs. Applied Blockchain | Freedom Holding vs. Hut 8 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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