Correlation Between Fingerprint Cards and Concentric
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Concentric 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 Concentric 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 Concentric AB, you can compare the effects of market volatilities on Fingerprint Cards and Concentric 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 Concentric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Concentric.
Diversification Opportunities for Fingerprint Cards and Concentric
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fingerprint and Concentric is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Concentric AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concentric 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 Concentric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concentric AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Concentric go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Concentric
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Concentric. In addition to that, Fingerprint Cards is 18.85 times more volatile than Concentric AB. It trades about -0.23 of its total potential returns per unit of risk. Concentric AB is currently generating about 0.05 per unit of volatility. If you would invest 22,950 in Concentric AB on August 27, 2024 and sell it today you would earn a total of 50.00 from holding Concentric AB or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 47.62% |
| Values | Daily Returns |
Fingerprint Cards AB vs. Concentric AB
Performance |
| Timeline |
| Fingerprint Cards |
| Concentric AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Fingerprint Cards and Concentric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Concentric
The main advantage of trading using opposite Fingerprint Cards and Concentric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Concentric 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 Concentric will offset losses from the drop in Concentric's long position.| Fingerprint Cards vs. Integrum AB Series | Fingerprint Cards vs. Concejo AB | Fingerprint Cards vs. Diadrom Holding AB | Fingerprint Cards vs. Greater Than AB |
| Concentric vs. Inwido AB | Concentric vs. Bufab Holding AB | Concentric vs. Beijer Alma AB | Concentric vs. Lindab International 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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