Correlation Between Cizzle Biotechnology and Freddie Mac

Can any of the company-specific risk be diversified away by investing in both Cizzle Biotechnology and Freddie Mac 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 Cizzle Biotechnology and Freddie Mac into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cizzle Biotechnology Holdings and Freddie Mac, you can compare the effects of market volatilities on Cizzle Biotechnology and Freddie Mac 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 Cizzle Biotechnology with a short position of Freddie Mac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cizzle Biotechnology and Freddie Mac.

Diversification Opportunities for Cizzle Biotechnology and Freddie Mac

-0.68

Correlation Coefficient

Cizzle Biotechnology  Freddie Mac

Excellent diversification

The 3 months correlation between Cizzle and Freddie is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cizzle Biotechnology Holdings and Freddie Mac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freddie Mac and Cizzle Biotechnology 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 Cizzle Biotechnology Holdings are associated (or correlated) with Freddie Mac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freddie Mac has no effect on the direction of Cizzle Biotechnology i.e., Cizzle Biotechnology and Freddie Mac go up and down completely randomly.

Pair Corralation between Cizzle Biotechnology and Freddie Mac

Assuming the 90 days trading horizon Cizzle Biotechnology Holdings is expected to under-perform the Freddie Mac. But the stock apears to be less risky and, when comparing its historical volatility, Cizzle Biotechnology Holdings is 2.5 times less risky than Freddie Mac. The stock trades about 0.0 of its potential returns per unit of risk. The Freddie Mac is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  108.00  in Freddie Mac on October 10, 2024 and sell it today you would earn a total of  341.00  from holding Freddie Mac or generate 315.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Cizzle Biotechnology Holdings  vs.  Freddie Mac

Cizzle Biotechnology

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cizzle Biotechnology Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Cizzle Biotechnology is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Freddie Mac

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Freddie Mac are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Freddie Mac unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cizzle Biotechnology and Freddie Mac

The main advantage of trading using opposite Cizzle Biotechnology and Freddie Mac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cizzle Biotechnology position performs unexpectedly, Freddie Mac 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 Freddie Mac will offset losses from the drop in Freddie Mac's long position.

The idea behind Cizzle Biotechnology Holdings and Freddie Mac pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.