Correlation Between Fingerprint Cards and Anoto Group
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Anoto Group 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 Anoto Group 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 Anoto Group AB, you can compare the effects of market volatilities on Fingerprint Cards and Anoto Group 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 Anoto Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Anoto Group.
Diversification Opportunities for Fingerprint Cards and Anoto Group
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fingerprint and Anoto is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Anoto Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anoto Group 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 Anoto Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anoto Group AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Anoto Group go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Anoto Group
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Anoto Group. In addition to that, Fingerprint Cards is 1.42 times more volatile than Anoto Group AB. It trades about -0.05 of its total potential returns per unit of risk. Anoto Group AB is currently generating about -0.02 per unit of volatility. If you would invest 37.00 in Anoto Group AB on August 31, 2024 and sell it today you would lose (25.00) from holding Anoto Group AB or give up 67.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. Anoto Group AB
Performance |
| Timeline |
| Fingerprint Cards |
| Anoto Group AB |
Fingerprint Cards and Anoto Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Anoto Group
The main advantage of trading using opposite Fingerprint Cards and Anoto Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Anoto Group 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 Anoto Group will offset losses from the drop in Anoto Group'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 |
| Anoto Group vs. Precise Biometrics AB | Anoto Group vs. Fingerprint Cards AB | Anoto Group vs. BioInvent International AB | Anoto Group vs. Bong 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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