Correlation Between Fingerprint Cards and AAC Clyde
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and AAC Clyde 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 Fingerprint Cards and AAC Clyde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fingerprint Cards AB and AAC Clyde Space, you can compare the effects of market volatilities on Fingerprint Cards and AAC Clyde 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 Fingerprint Cards with a short position of AAC Clyde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and AAC Clyde.
Diversification Opportunities for Fingerprint Cards and AAC Clyde
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fingerprint and AAC is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and AAC Clyde Space in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AAC Clyde Space and Fingerprint Cards 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 Fingerprint Cards AB are associated (or correlated) with AAC Clyde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AAC Clyde Space has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and AAC Clyde go up and down completely randomly.
Pair Corralation between Fingerprint Cards and AAC Clyde
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the AAC Clyde. In addition to that, Fingerprint Cards is 2.73 times more volatile than AAC Clyde Space. It trades about -0.04 of its total potential returns per unit of risk. AAC Clyde Space is currently generating about 0.06 per unit of volatility. If you would invest 3,250 in AAC Clyde Space on August 24, 2024 and sell it today you would earn a total of 1,450 from holding AAC Clyde Space or generate 44.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. AAC Clyde Space
Performance |
| Timeline |
| Fingerprint Cards |
| AAC Clyde Space |
Fingerprint Cards and AAC Clyde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and AAC Clyde
The main advantage of trading using opposite Fingerprint Cards and AAC Clyde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, AAC Clyde 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 AAC Clyde will offset losses from the drop in AAC Clyde's long position.| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
| AAC Clyde vs. GomSpace Group AB | AAC Clyde vs. Eolus Vind AB | AAC Clyde vs. Fingerprint Cards AB | AAC Clyde vs. SaltX Technology Holding |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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