Correlation Between Idex Biometrics and AMTD Digital
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and AMTD Digital 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 AMTD Digital 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 AMTD Digital, you can compare the effects of market volatilities on Idex Biometrics and AMTD Digital 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 AMTD Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and AMTD Digital.
Diversification Opportunities for Idex Biometrics and AMTD Digital
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Idex and AMTD is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and AMTD Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMTD Digital 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 AMTD Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMTD Digital has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and AMTD Digital go up and down completely randomly.
Pair Corralation between Idex Biometrics and AMTD Digital
If you would invest 481.00 in Idex Biometrics ASA on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Idex Biometrics ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Idex Biometrics ASA vs. AMTD Digital
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMTD Digital |
Idex Biometrics and AMTD Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and AMTD Digital
The main advantage of trading using opposite Idex Biometrics and AMTD Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, AMTD Digital 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 AMTD Digital will offset losses from the drop in AMTD Digital's long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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