Correlation Between Idex Biometrics and Agent Information
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and Agent Information 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 Idex Biometrics and Agent Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Idex Biometrics ASA and Agent Information Software, you can compare the effects of market volatilities on Idex Biometrics and Agent Information 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 Idex Biometrics with a short position of Agent Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and Agent Information.
Diversification Opportunities for Idex Biometrics and Agent Information
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Idex and Agent is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and Agent Information Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agent Information and Idex Biometrics 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 Idex Biometrics ASA are associated (or correlated) with Agent Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agent Information has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and Agent Information go up and down completely randomly.
Pair Corralation between Idex Biometrics and Agent Information
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the Agent Information. But the stock apears to be less risky and, when comparing its historical volatility, Idex Biometrics ASA is 1.42 times less risky than Agent Information. The stock trades about -0.04 of its potential returns per unit of risk. The Agent Information Software is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 175.00 in Agent Information Software on August 31, 2024 and sell it today you would lose (40.00) from holding Agent Information Software or give up 22.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.51% |
| Values | Daily Returns |
Idex Biometrics ASA vs. Agent Information Software
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Agent Information |
Idex Biometrics and Agent Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and Agent Information
The main advantage of trading using opposite Idex Biometrics and Agent Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, Agent Information 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 Agent Information will offset losses from the drop in Agent Information's long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
| Agent Information vs. Waldencast Acquisition Corp | Agent Information vs. Alkami Technology | Agent Information vs. ADEIA P | Agent Information vs. Paycor HCM |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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