Correlation Between Idex Biometrics and Research Solutions
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and Research Solutions 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 Research Solutions 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 Research Solutions, you can compare the effects of market volatilities on Idex Biometrics and Research Solutions 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 Research Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and Research Solutions.
Diversification Opportunities for Idex Biometrics and Research Solutions
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Idex and Research is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and Research Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Research Solutions 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 Research Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Research Solutions has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and Research Solutions go up and down completely randomly.
Pair Corralation between Idex Biometrics and Research Solutions
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the Research Solutions. But the stock apears to be less risky and, when comparing its historical volatility, Idex Biometrics ASA is 1.46 times less risky than Research Solutions. The stock trades about -0.39 of its potential returns per unit of risk. The Research Solutions is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 209.00 in Research Solutions on August 28, 2024 and sell it today you would earn a total of 127.00 from holding Research Solutions or generate 60.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.24% |
| Values | Daily Returns |
Idex Biometrics ASA vs. Research Solutions
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Research Solutions |
Idex Biometrics and Research Solutions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and Research Solutions
The main advantage of trading using opposite Idex Biometrics and Research Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, Research Solutions 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 Research Solutions will offset losses from the drop in Research Solutions' long position.| Idex Biometrics vs. Bubblr Inc | Idex Biometrics vs. WonderFi Technologies | Idex Biometrics vs. Oblong Inc | Idex Biometrics vs. Where Food Comes |
| Research Solutions vs. Rayont Inc | Research Solutions vs. Shotspotter | Research Solutions vs. Issuer Direct Corp | Research Solutions vs. eGain |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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