Correlation Between Freedom Internet and Kodiak Gas

Can any of the company-specific risk be diversified away by investing in both Freedom Internet and Kodiak Gas 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 Freedom Internet and Kodiak Gas into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Freedom Internet Group and Kodiak Gas Services,, you can compare the effects of market volatilities on Freedom Internet and Kodiak Gas 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 Internet with a short position of Kodiak Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freedom Internet and Kodiak Gas.

Diversification Opportunities for Freedom Internet and Kodiak Gas

0.0

Correlation Coefficient

Freedom Internet  Kodiak Gas

Pay attention - limited upside

The 3 months correlation between Freedom and Kodiak is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Internet Group and Kodiak Gas Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kodiak Gas Services, and Freedom Internet 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 Internet Group are associated (or correlated) with Kodiak Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kodiak Gas Services, has no effect on the direction of Freedom Internet i.e., Freedom Internet and Kodiak Gas go up and down completely randomly.

Pair Corralation between Freedom Internet and Kodiak Gas

If you would invest  3,944  in Kodiak Gas Services, on December 20, 2024 and sell it today you would lose (62.00) from holding Kodiak Gas Services, or give up 1.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Freedom Internet Group  vs.  Kodiak Gas Services,

Freedom Internet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freedom Internet Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical and fundamental indicators, Freedom Internet is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Kodiak Gas Services,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kodiak Gas Services, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Kodiak Gas is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Freedom Internet and Kodiak Gas

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

The idea behind Freedom Internet Group and Kodiak Gas Services, 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.

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.