Correlation Between Fingerprint Cards and Smart Eye
Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Smart Eye 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 Smart Eye 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 Smart Eye AB, you can compare the effects of market volatilities on Fingerprint Cards and Smart Eye 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 Smart Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fingerprint Cards and Smart Eye.
Diversification Opportunities for Fingerprint Cards and Smart Eye
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fingerprint and Smart is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Smart Eye AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Eye 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 Smart Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Eye AB has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Smart Eye go up and down completely randomly.
Pair Corralation between Fingerprint Cards and Smart Eye
Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Smart Eye. In addition to that, Fingerprint Cards is 2.42 times more volatile than Smart Eye AB. It trades about -0.23 of its total potential returns per unit of risk. Smart Eye AB is currently generating about -0.16 per unit of volatility. If you would invest 6,670 in Smart Eye AB on August 27, 2024 and sell it today you would lose (740.00) from holding Smart Eye AB or give up 11.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fingerprint Cards AB vs. Smart Eye AB
Performance |
| Timeline |
| Fingerprint Cards |
| Smart Eye AB |
Fingerprint Cards and Smart Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fingerprint Cards and Smart Eye
The main advantage of trading using opposite Fingerprint Cards and Smart Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fingerprint Cards position performs unexpectedly, Smart Eye 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 Smart Eye will offset losses from the drop in Smart Eye'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 |
| Smart Eye vs. Lifco AB | Smart Eye vs. Lagercrantz Group AB | Smart Eye vs. Addtech AB | Smart Eye vs. Instalco Intressenter 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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