Correlation Between Fingerprint Cards and SaltX Technology
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and SaltX Technology 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 SaltX Technology 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 SaltX Technology Holding, you can compare the effects of market volatilities on Fingerprint Cards and SaltX Technology 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 SaltX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and SaltX Technology.
Diversification Opportunities for Fingerprint Cards and SaltX Technology
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Fingerprint and SaltX is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and SaltX Technology Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SaltX Technology Holding 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 SaltX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SaltX Technology Holding has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and SaltX Technology go up and down completely randomly.
Pair Corralation between Fingerprint Cards and SaltX Technology
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to generate 11.65 times more return on investment than SaltX Technology. However, Fingerprint Cards is 11.65 times more volatile than SaltX Technology Holding. It trades about 0.0 of its potential returns per unit of risk. SaltX Technology Holding is currently generating about -0.06 per unit of risk. If you would invest 3.66 in Fingerprint Cards AB on November 4, 2024 and sell it today you would lose (1.84) from holding Fingerprint Cards AB or give up 50.27% 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. SaltX Technology Holding
Performance |
| Timeline |
| Fingerprint Cards |
| SaltX Technology Holding |
Fingerprint Cards and SaltX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and SaltX Technology
The main advantage of trading using opposite Fingerprint Cards and SaltX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, SaltX Technology 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 SaltX Technology will offset losses from the drop in SaltX Technology'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 |
| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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