Correlation Between Fingerprint Cards and Hexagon AB
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Hexagon AB 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 Hexagon AB 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 Hexagon AB, you can compare the effects of market volatilities on Fingerprint Cards and Hexagon AB 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 Hexagon AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Hexagon AB.
Diversification Opportunities for Fingerprint Cards and Hexagon AB
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fingerprint and Hexagon is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Hexagon AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hexagon 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 Hexagon AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hexagon AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Hexagon AB go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Hexagon AB
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Hexagon AB. In addition to that, Fingerprint Cards is 6.64 times more volatile than Hexagon AB. It trades about -0.1 of its total potential returns per unit of risk. Hexagon AB is currently generating about 0.41 per unit of volatility. If you would invest 10,570 in Hexagon AB on October 24, 2024 and sell it today you would earn a total of 1,080 from holding Hexagon AB or generate 10.22% 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. Hexagon AB
Performance |
| Timeline |
| Fingerprint Cards |
| Hexagon AB |
Fingerprint Cards and Hexagon AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Hexagon AB
The main advantage of trading using opposite Fingerprint Cards and Hexagon AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Hexagon AB 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 Hexagon AB will offset losses from the drop in Hexagon AB'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 |
| Hexagon AB vs. ASSA ABLOY AB | Hexagon AB vs. Sandvik AB | Hexagon AB vs. Investor AB ser | Hexagon AB vs. NIBE Industrier 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |