Correlation Between CompoSecure and Freedom Internet

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

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

Diversification Opportunities for CompoSecure and Freedom Internet

0.0

Correlation Coefficient

CompoSecure  Freedom Internet

Pay attention - limited upside

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

Pair Corralation between CompoSecure and Freedom Internet

If you would invest  450.00  in CompoSecure on May 12, 2025 and sell it today you would earn a total of  498.00  from holding CompoSecure or generate 110.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

CompoSecure  vs.  Freedom Internet Group

CompoSecure

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CompoSecure are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, CompoSecure showed solid returns over the last few months and may actually be approaching a breakup point.

Freedom Internet

Risk-Adjusted Performance

Weakest

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 newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CompoSecure and Freedom Internet

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

The idea behind CompoSecure and Freedom Internet Group 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.