Correlation Between Global Digital and BIO Key
Can any of the company-specific risk be diversified away by investing in both Global Digital and BIO Key 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 Global Digital and BIO Key into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Digital Soltn and BIO Key International, you can compare the effects of market volatilities on Global Digital and BIO Key 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 Global Digital with a short position of BIO Key. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Digital and BIO Key.
Diversification Opportunities for Global Digital and BIO Key
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Global and BIO is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Global Digital Soltn and BIO Key International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIO Key International and Global Digital 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 Global Digital Soltn are associated (or correlated) with BIO Key. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIO Key International has no effect on the direction of Global Digital i.e., Global Digital and BIO Key go up and down completely randomly.
Pair Corralation between Global Digital and BIO Key
If you would invest 139.00 in BIO Key International on November 3, 2024 and sell it today you would lose (5.00) from holding BIO Key International or give up 3.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Global Digital Soltn vs. BIO Key International
Performance |
| Timeline |
| Global Digital Soltn |
| BIO Key International |
Global Digital and BIO Key Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Digital and BIO Key
The main advantage of trading using opposite Global Digital and BIO Key positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Digital position performs unexpectedly, BIO Key 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 BIO Key will offset losses from the drop in BIO Key's long position.| Global Digital vs. ASSA ABLOY AB | Global Digital vs. Bridger Aerospace Group | Global Digital vs. Ameriguard Security Services | Global Digital vs. Vopia Inc |
| BIO Key vs. LogicMark | BIO Key vs. SSC Security Services | BIO Key vs. ICTS International NV | BIO Key vs. Senstar Technologies |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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