Correlation Between Idex Biometrics and Where Food
Can any of the company-specific risk be diversified away by investing in both Idex Biometrics and Where Food 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 Where Food 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 Where Food Comes, you can compare the effects of market volatilities on Idex Biometrics and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Idex Biometrics and Where Food.
Diversification Opportunities for Idex Biometrics and Where Food
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Idex and Where is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and Where Food go up and down completely randomly.
Pair Corralation between Idex Biometrics and Where Food
Given the investment horizon of 90 days Idex Biometrics ASA is expected to under-perform the Where Food. But the stock apears to be less risky and, when comparing its historical volatility, Idex Biometrics ASA is 1.13 times less risky than Where Food. The stock trades about -0.39 of its potential returns per unit of risk. The Where Food Comes is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,367 in Where Food Comes on August 28, 2024 and sell it today you would lose (200.00) from holding Where Food Comes or give up 14.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.24% |
| Values | Daily Returns |
Idex Biometrics ASA vs. Where Food Comes
Performance |
| Timeline |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Where Food Comes |
Idex Biometrics and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Idex Biometrics and Where Food
The main advantage of trading using opposite Idex Biometrics and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Idex Biometrics position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food'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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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