Correlation Between Gapwaves and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Gapwaves and Fingerprint Cards 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 Gapwaves and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gapwaves AB Series and Fingerprint Cards AB, you can compare the effects of market volatilities on Gapwaves and Fingerprint Cards 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 Gapwaves with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gapwaves and Fingerprint Cards.
Diversification Opportunities for Gapwaves and Fingerprint Cards
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gapwaves and Fingerprint is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gapwaves AB Series and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Gapwaves 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 Gapwaves AB Series are associated (or correlated) with Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Gapwaves i.e., Gapwaves and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Gapwaves and Fingerprint Cards
Assuming the 90 days trading horizon Gapwaves AB Series is expected to generate 0.33 times more return on investment than Fingerprint Cards. However, Gapwaves AB Series is 3.07 times less risky than Fingerprint Cards. It trades about 0.05 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.21 per unit of risk. If you would invest 1,792 in Gapwaves AB Series on August 24, 2024 and sell it today you would earn a total of 38.00 from holding Gapwaves AB Series or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gapwaves AB Series vs. Fingerprint Cards AB
Performance |
| Timeline |
| Gapwaves AB Series |
| Fingerprint Cards |
Gapwaves and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gapwaves and Fingerprint Cards
The main advantage of trading using opposite Gapwaves and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gapwaves position performs unexpectedly, Fingerprint Cards 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 Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.| Gapwaves vs. Sivers IMA Holding | Gapwaves vs. SaltX Technology Holding | Gapwaves vs. Acconeer AB | Gapwaves vs. Fingerprint Cards AB |
| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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