Correlation Between BIO Key and Global Digital
Can any of the company-specific risk be diversified away by investing in both BIO Key and Global Digital 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 BIO Key and Global Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BIO Key International and Global Digital Soltn, you can compare the effects of market volatilities on BIO Key and Global Digital 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 BIO Key with a short position of Global Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BIO Key and Global Digital.
Diversification Opportunities for BIO Key and Global Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BIO and Global is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BIO Key International and Global Digital Soltn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Digital Soltn and BIO Key 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 BIO Key International are associated (or correlated) with Global Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Digital Soltn has no effect on the direction of BIO Key i.e., BIO Key and Global Digital go up and down completely randomly.
Pair Corralation between BIO Key and Global Digital
If you would invest 139.00 in BIO Key International on November 3, 2024 and sell it today you would lose (5.00) from holding BIO Key International or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BIO Key International vs. Global Digital Soltn
Performance |
| Timeline |
| BIO Key International |
| Global Digital Soltn |
BIO Key and Global Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BIO Key and Global Digital
The main advantage of trading using opposite BIO Key and Global Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BIO Key position performs unexpectedly, Global Digital 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 Global Digital will offset losses from the drop in Global Digital's long position.| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
| Global Digital vs. ASSA ABLOY AB | Global Digital vs. Bridger Aerospace Group | Global Digital vs. Ameriguard Security Services | Global Digital vs. Vopia Inc |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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