Correlation Between Fingerprint Cards and NOTE AB
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and NOTE 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 NOTE 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 NOTE AB, you can compare the effects of market volatilities on Fingerprint Cards and NOTE 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 NOTE AB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and NOTE AB.
Diversification Opportunities for Fingerprint Cards and NOTE AB
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fingerprint and NOTE is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and NOTE AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOTE 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 NOTE AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOTE AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and NOTE AB go up and down completely randomly.
Pair Corralation between Fingerprint Cards and NOTE AB
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the NOTE AB. In addition to that, Fingerprint Cards is 3.17 times more volatile than NOTE AB. It trades about -0.04 of its total potential returns per unit of risk. NOTE AB is currently generating about -0.01 per unit of volatility. If you would invest 16,560 in NOTE AB on August 28, 2024 and sell it today you would lose (3,440) from holding NOTE AB or give up 20.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. NOTE AB
Performance |
| Timeline |
| Fingerprint Cards |
| NOTE AB |
Fingerprint Cards and NOTE AB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and NOTE AB
The main advantage of trading using opposite Fingerprint Cards and NOTE AB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, NOTE 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 NOTE AB will offset losses from the drop in NOTE AB'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 |
| NOTE AB vs. Swedbank AB | NOTE AB vs. Fractal Gaming Group | NOTE AB vs. JLT Mobile Computers | NOTE AB vs. Flexion Mobile PLC |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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