Correlation Between IDEX Biometrics and Clearwater Analytics
Can any of the company-specific risk be diversified away by investing in both IDEX Biometrics and Clearwater Analytics 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 Clearwater Analytics 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 Clearwater Analytics Holdings, you can compare the effects of market volatilities on IDEX Biometrics and Clearwater Analytics 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 Clearwater Analytics. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEX Biometrics and Clearwater Analytics.
Diversification Opportunities for IDEX Biometrics and Clearwater Analytics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IDEX and Clearwater is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding IDEX Biometrics ASA and Clearwater Analytics Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clearwater Analytics 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 Clearwater Analytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clearwater Analytics has no effect on the direction of IDEX Biometrics i.e., IDEX Biometrics and Clearwater Analytics go up and down completely randomly.
Pair Corralation between IDEX Biometrics and Clearwater Analytics
If you would invest 2,525 in Clearwater Analytics Holdings on August 30, 2024 and sell it today you would earn a total of 696.00 from holding Clearwater Analytics Holdings or generate 27.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
IDEX Biometrics ASA vs. Clearwater Analytics Holdings
Performance |
| Timeline |
| IDEX Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Clearwater Analytics |
IDEX Biometrics and Clearwater Analytics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDEX Biometrics and Clearwater Analytics
The main advantage of trading using opposite IDEX Biometrics and Clearwater Analytics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEX Biometrics position performs unexpectedly, Clearwater Analytics 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 Clearwater Analytics will offset losses from the drop in Clearwater Analytics' long position.| IDEX Biometrics vs. Issuer Direct Corp | IDEX Biometrics vs. eGain | IDEX Biometrics vs. Research Solutions | IDEX Biometrics vs. Ackroo Inc |
| Clearwater Analytics vs. C3 Ai Inc | Clearwater Analytics vs. Shopify | Clearwater Analytics vs. Workday | Clearwater Analytics vs. Intuit 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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