Correlation Between Fingerprint Cards and Precise Biometrics
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Precise Biometrics 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 Precise Biometrics 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 Precise Biometrics AB, you can compare the effects of market volatilities on Fingerprint Cards and Precise Biometrics 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 Precise Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Precise Biometrics.
Diversification Opportunities for Fingerprint Cards and Precise Biometrics
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Fingerprint and Precise is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Precise Biometrics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precise Biometrics 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 Precise Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precise Biometrics has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Precise Biometrics go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Precise Biometrics
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Precise Biometrics. In addition to that, Fingerprint Cards is 1.11 times more volatile than Precise Biometrics AB. It trades about -0.07 of its total potential returns per unit of risk. Precise Biometrics AB is currently generating about 0.11 per unit of volatility. If you would invest 110.00 in Precise Biometrics AB on August 25, 2024 and sell it today you would earn a total of 371.00 from holding Precise Biometrics AB or generate 337.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. Precise Biometrics AB
Performance |
| Timeline |
| Fingerprint Cards |
| Precise Biometrics |
Fingerprint Cards and Precise Biometrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Precise Biometrics
The main advantage of trading using opposite Fingerprint Cards and Precise Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Precise Biometrics 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 Precise Biometrics will offset losses from the drop in Precise Biometrics' long position.| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
| Precise Biometrics vs. Fingerprint Cards AB | Precise Biometrics vs. Anoto Group AB | Precise Biometrics vs. Next Biometrics Group | Precise Biometrics vs. Idex ASA |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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