Correlation Between Idaho Strategic and Freedom Holding

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

By analyzing existing cross correlation between Idaho Strategic Resources and Freedom Holding Corp, you can compare the effects of market volatilities on Idaho Strategic 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 Idaho Strategic with a short position of Freedom Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idaho Strategic and Freedom Holding.

Diversification Opportunities for Idaho Strategic and Freedom Holding

0.75

Correlation Coefficient

Idaho Strategic  Freedom Holding

Poor diversification

The 3 months correlation between Idaho and Freedom is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Idaho Strategic Resources 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 Idaho Strategic 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 Idaho Strategic Resources 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 Idaho Strategic i.e., Idaho Strategic and Freedom Holding go up and down completely randomly.

Pair Corralation between Idaho Strategic and Freedom Holding

Considering the 90-day investment horizon Idaho Strategic Resources is expected to generate 1.52 times more return on investment than Freedom Holding. However, Idaho Strategic is 1.52 times more volatile than Freedom Holding Corp. It trades about 0.13 of its potential returns per unit of risk. Freedom Holding Corp is currently generating about 0.04 per unit of risk. If you would invest  1,022  in Idaho Strategic Resources on December 19, 2024 and sell it today you would earn a total of  277.00  from holding Idaho Strategic Resources or generate 27.1% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Idaho Strategic Resources  vs.  Freedom Holding Corp

Idaho Strategic Resources

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Idaho Strategic Resources are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental indicators, Idaho Strategic reported solid returns over the last few months and may actually be approaching a breakup point.

Freedom Holding Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Freedom Holding Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Freedom Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Idaho Strategic and Freedom Holding

The main advantage of trading using opposite Idaho Strategic and Freedom Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idaho Strategic 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.

The idea behind Idaho Strategic Resources and Freedom Holding Corp 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 Global Correlations module to find global opportunities by holding instruments from different markets.