Correlation Between Acconeer and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Acconeer and Fingerprint Cards 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 Acconeer and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acconeer AB and Fingerprint Cards AB, you can compare the effects of market volatilities on Acconeer and Fingerprint Cards 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 Acconeer with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acconeer and Fingerprint Cards.
Diversification Opportunities for Acconeer and Fingerprint Cards
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Acconeer and Fingerprint is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Acconeer AB and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Acconeer 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 Acconeer AB are associated (or correlated) with Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Acconeer i.e., Acconeer and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Acconeer and Fingerprint Cards
Assuming the 90 days trading horizon Acconeer AB is expected to under-perform the Fingerprint Cards. But the stock apears to be less risky and, when comparing its historical volatility, Acconeer AB is 10.62 times less risky than Fingerprint Cards. The stock trades about -0.18 of its potential returns per unit of risk. The Fingerprint Cards AB is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3.66 in Fingerprint Cards AB on November 4, 2024 and sell it today you would lose (1.84) from holding Fingerprint Cards AB or give up 50.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Acconeer AB vs. Fingerprint Cards AB
Performance |
| Timeline |
| Acconeer AB |
| Fingerprint Cards |
Acconeer and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Acconeer and Fingerprint Cards
The main advantage of trading using opposite Acconeer and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acconeer position performs unexpectedly, Fingerprint Cards 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 Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA Holding |
| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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