Correlation Between Idex Biometrics and Kaspien Holdings
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and Kaspien Holdings 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 Kaspien Holdings 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 Kaspien Holdings, you can compare the effects of market volatilities on Idex Biometrics and Kaspien Holdings 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 Kaspien Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and Kaspien Holdings.
Diversification Opportunities for Idex Biometrics and Kaspien Holdings
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Idex and Kaspien is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and Kaspien Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspien Holdings 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 Kaspien Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspien Holdings has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and Kaspien Holdings go up and down completely randomly.
Pair Corralation between Idex Biometrics and Kaspien Holdings
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the Kaspien Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Idex Biometrics ASA is 2.25 times less risky than Kaspien Holdings. The stock trades about -0.08 of its potential returns per unit of risk. The Kaspien Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Kaspien Holdings on August 28, 2024 and sell it today you would lose (49.00) from holding Kaspien Holdings or give up 66.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.71% |
| Values | Daily Returns |
Idex Biometrics ASA vs. Kaspien Holdings
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Idex Biometrics and Kaspien Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and Kaspien Holdings
The main advantage of trading using opposite Idex Biometrics and Kaspien Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, Kaspien Holdings 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 Kaspien Holdings will offset losses from the drop in Kaspien Holdings' long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
| Kaspien Holdings vs. Quoin Pharmaceuticals Ltd | Kaspien Holdings vs. Intelligent Living Application | Kaspien Holdings vs. Revelation Biosciences | Kaspien Holdings vs. Virax Biolabs Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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