Correlation Between Idex Biometrics and CoreCard Corp
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and CoreCard Corp 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 CoreCard Corp 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 CoreCard Corp, you can compare the effects of market volatilities on Idex Biometrics and CoreCard Corp 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 CoreCard Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and CoreCard Corp.
Diversification Opportunities for Idex Biometrics and CoreCard Corp
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Idex and CoreCard is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and CoreCard Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoreCard Corp 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 CoreCard Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoreCard Corp has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and CoreCard Corp go up and down completely randomly.
Pair Corralation between Idex Biometrics and CoreCard Corp
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the CoreCard Corp. But the stock apears to be less risky and, when comparing its historical volatility, Idex Biometrics ASA is 1.74 times less risky than CoreCard Corp. The stock trades about -0.1 of its potential returns per unit of risk. The CoreCard Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,522 in CoreCard Corp on August 27, 2024 and sell it today you would lose (551.00) from holding CoreCard Corp or give up 21.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 9.38% |
| Values | Daily Returns |
Idex Biometrics ASA vs. CoreCard Corp
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CoreCard Corp |
Idex Biometrics and CoreCard Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and CoreCard Corp
The main advantage of trading using opposite Idex Biometrics and CoreCard Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, CoreCard Corp 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 CoreCard Corp will offset losses from the drop in CoreCard Corp's long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
| CoreCard Corp vs. Meridianlink | CoreCard Corp vs. Clearwater Analytics Holdings | CoreCard Corp vs. Expensify | CoreCard Corp vs. Envestnet |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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