Correlation Between Freedom Bank and 191216DK3
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By analyzing existing cross correlation between Freedom Bank of and COCA COLA CO, you can compare the effects of market volatilities on Freedom Bank and 191216DK3 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 Bank with a short position of 191216DK3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Bank and 191216DK3.
Diversification Opportunities for Freedom Bank and 191216DK3
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Freedom and 191216DK3 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Bank of and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO and Freedom Bank 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 Bank of are associated (or correlated) with 191216DK3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Freedom Bank i.e., Freedom Bank and 191216DK3 go up and down completely randomly.
Pair Corralation between Freedom Bank and 191216DK3
Given the investment horizon of 90 days Freedom Bank of is expected to generate 2.22 times more return on investment than 191216DK3. However, Freedom Bank is 2.22 times more volatile than COCA COLA CO. It trades about 0.07 of its potential returns per unit of risk. COCA COLA CO is currently generating about 0.0 per unit of risk. If you would invest 975.00 in Freedom Bank of on September 26, 2024 and sell it today you would earn a total of 86.00 from holding Freedom Bank of or generate 8.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 96.0% |
Values | Daily Returns |
Freedom Bank of vs. COCA COLA CO
Performance |
Timeline |
Freedom Bank |
COCA A CO |
Freedom Bank and 191216DK3 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Freedom Bank and 191216DK3
The main advantage of trading using opposite Freedom Bank and 191216DK3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Bank position performs unexpectedly, 191216DK3 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 191216DK3 will offset losses from the drop in 191216DK3's long position.Freedom Bank vs. Citizens Financial Corp | Freedom Bank vs. Farmers Bancorp | Freedom Bank vs. Alpine Banks of | Freedom Bank vs. Taylor Calvin B |
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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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