Correlation Between Fingerprint Cards and Acconeer
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Acconeer 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 Acconeer 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 Acconeer AB, you can compare the effects of market volatilities on Fingerprint Cards and Acconeer 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 Acconeer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Acconeer.
Diversification Opportunities for Fingerprint Cards and Acconeer
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Fingerprint and Acconeer is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Acconeer AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acconeer AB 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 Acconeer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acconeer AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Acconeer go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Acconeer
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to generate 10.62 times more return on investment than Acconeer. However, Fingerprint Cards is 10.62 times more volatile than Acconeer AB. It trades about 0.0 of its potential returns per unit of risk. Acconeer AB is currently generating about -0.18 per unit of risk. 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 |
Fingerprint Cards AB vs. Acconeer AB
Performance |
| Timeline |
| Fingerprint Cards |
| Acconeer AB |
Fingerprint Cards and Acconeer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Acconeer
The main advantage of trading using opposite Fingerprint Cards and Acconeer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Acconeer 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 Acconeer will offset losses from the drop in Acconeer'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 |
| Acconeer vs. Cantargia AB | Acconeer vs. Fingerprint Cards AB | Acconeer vs. Smart Eye AB | Acconeer vs. Sivers IMA 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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