Correlation Between 25160PAE7 and Freedom Holding
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By analyzing existing cross correlation between DEUTSCHE BK AG and Freedom Holding Corp, you can compare the effects of market volatilities on 25160PAE7 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 25160PAE7 with a short position of Freedom Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of 25160PAE7 and Freedom Holding.
Diversification Opportunities for 25160PAE7 and Freedom Holding
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 25160PAE7 and Freedom is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding DEUTSCHE BK AG 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 25160PAE7 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 DEUTSCHE BK AG 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 25160PAE7 i.e., 25160PAE7 and Freedom Holding go up and down completely randomly.
Pair Corralation between 25160PAE7 and Freedom Holding
Assuming the 90 days trading horizon DEUTSCHE BK AG is expected to under-perform the Freedom Holding. But the bond apears to be less risky and, when comparing its historical volatility, DEUTSCHE BK AG is 2.41 times less risky than Freedom Holding. The bond trades about -0.18 of its potential returns per unit of risk. The Freedom Holding Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 13,133 in Freedom Holding Corp on November 6, 2024 and sell it today you would earn a total of 1,176 from holding Freedom Holding Corp or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 45.0% |
| Values | Daily Returns |
DEUTSCHE BK AG vs. Freedom Holding Corp
Performance |
| Timeline |
| DEUTSCHE BK AG |
| Freedom Holding Corp |
25160PAE7 and Freedom Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 25160PAE7 and Freedom Holding
The main advantage of trading using opposite 25160PAE7 and Freedom Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 25160PAE7 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.| 25160PAE7 vs. Wheels Up Experience | 25160PAE7 vs. Nok Airlines Public | 25160PAE7 vs. SkyWest | 25160PAE7 vs. Mesa Air Group |
| Freedom Holding vs. Nomura Holdings ADR | Freedom Holding vs. Scully Royalty | Freedom Holding vs. Oppenheimer Holdings | Freedom Holding vs. Houlihan Lokey |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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