Correlation Between Eolus Vind and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Eolus Vind 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 Eolus Vind and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eolus Vind AB and Fingerprint Cards AB, you can compare the effects of market volatilities on Eolus Vind 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 Eolus Vind with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eolus Vind and Fingerprint Cards.
Diversification Opportunities for Eolus Vind and Fingerprint Cards
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eolus and Fingerprint is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Eolus Vind 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 Eolus Vind 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 Eolus Vind 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 Eolus Vind i.e., Eolus Vind and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Eolus Vind and Fingerprint Cards
Assuming the 90 days trading horizon Eolus Vind AB is expected to generate 0.3 times more return on investment than Fingerprint Cards. However, Eolus Vind AB is 3.32 times less risky than Fingerprint Cards. It trades about -0.05 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.04 per unit of risk. If you would invest 9,873 in Eolus Vind AB on August 28, 2024 and sell it today you would lose (5,288) from holding Eolus Vind AB or give up 53.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eolus Vind AB vs. Fingerprint Cards AB
Performance |
| Timeline |
| Eolus Vind AB |
| Fingerprint Cards |
Eolus Vind and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eolus Vind and Fingerprint Cards
The main advantage of trading using opposite Eolus Vind and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eolus Vind 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.| Eolus Vind vs. NOTE AB | Eolus Vind vs. Zaptec AS | Eolus Vind vs. SolTech Energy Sweden | Eolus Vind vs. Scatec Solar OL |
| Fingerprint Cards vs. Integrum AB Series | Fingerprint Cards vs. Concejo AB | Fingerprint Cards vs. Diadrom Holding AB | Fingerprint Cards vs. Greater Than AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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