Correlation Between Fingerprint Cards and Africa Oil
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Africa Oil 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 Africa Oil 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 Africa Oil Corp, you can compare the effects of market volatilities on Fingerprint Cards and Africa Oil 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 Africa Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Africa Oil.
Diversification Opportunities for Fingerprint Cards and Africa Oil
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fingerprint and Africa is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Africa Oil Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Africa Oil Corp 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 Africa Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Africa Oil Corp has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Africa Oil go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Africa Oil
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Africa Oil. In addition to that, Fingerprint Cards is 7.06 times more volatile than Africa Oil Corp. It trades about -0.28 of its total potential returns per unit of risk. Africa Oil Corp is currently generating about -0.28 per unit of volatility. If you would invest 1,555 in Africa Oil Corp on September 25, 2024 and sell it today you would lose (143.00) from holding Africa Oil Corp or give up 9.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. Africa Oil Corp
Performance |
| Timeline |
| Fingerprint Cards |
| Africa Oil Corp |
Fingerprint Cards and Africa Oil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Africa Oil
The main advantage of trading using opposite Fingerprint Cards and Africa Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Africa Oil 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 Africa Oil will offset losses from the drop in Africa Oil's long position.| Fingerprint Cards vs. Integrum AB Series | Fingerprint Cards vs. Lipigon Pharmaceuticals AB | Fingerprint Cards vs. Diadrom Holding AB | Fingerprint Cards vs. Greater Than AB |
| Africa Oil vs. GomSpace Group AB | Africa Oil vs. SaltX Technology Holding | Africa Oil vs. Ambu AS | Africa Oil vs. Fingerprint Cards 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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