Correlation Between Idex Biometrics and MIND CTI
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and MIND CTI 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 MIND CTI 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 MIND CTI, you can compare the effects of market volatilities on Idex Biometrics and MIND CTI 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 MIND CTI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and MIND CTI.
Diversification Opportunities for Idex Biometrics and MIND CTI
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Idex and MIND is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and MIND CTI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MIND CTI 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 MIND CTI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MIND CTI has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and MIND CTI go up and down completely randomly.
Pair Corralation between Idex Biometrics and MIND CTI
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the MIND CTI. In addition to that, Idex Biometrics is 3.6 times more volatile than MIND CTI. It trades about -0.04 of its total potential returns per unit of risk. MIND CTI is currently generating about 0.02 per unit of volatility. If you would invest 178.00 in MIND CTI on August 31, 2024 and sell it today you would earn a total of 20.00 from holding MIND CTI or generate 11.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 28.51% |
| Values | Daily Returns |
Idex Biometrics ASA vs. MIND CTI
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| MIND CTI |
Idex Biometrics and MIND CTI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and MIND CTI
The main advantage of trading using opposite Idex Biometrics and MIND CTI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, MIND CTI 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 MIND CTI will offset losses from the drop in MIND CTI's long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
| MIND CTI vs. The INX Digital | MIND CTI vs. RenoWorks Software | MIND CTI vs. LifeSpeak | MIND CTI vs. Aware Inc |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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