Correlation Between IDEX Biometrics and Freight Technologies
Can any of the company-specific risk be diversified away by investing in both IDEX Biometrics and Freight Technologies 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 Freight Technologies 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 Freight Technologies, you can compare the effects of market volatilities on IDEX Biometrics and Freight Technologies 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 Freight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEX Biometrics and Freight Technologies.
Diversification Opportunities for IDEX Biometrics and Freight Technologies
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IDEX and Freight is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding IDEX Biometrics ASA and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies 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 Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of IDEX Biometrics i.e., IDEX Biometrics and Freight Technologies go up and down completely randomly.
Pair Corralation between IDEX Biometrics and Freight Technologies
If you would invest 17.00 in IDEX Biometrics ASA on September 2, 2024 and sell it today you would earn a total of 0.00 from holding IDEX Biometrics ASA or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.4% |
| Values | Daily Returns |
IDEX Biometrics ASA vs. Freight Technologies
Performance |
| Timeline |
| IDEX Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Freight Technologies |
IDEX Biometrics and Freight Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDEX Biometrics and Freight Technologies
The main advantage of trading using opposite IDEX Biometrics and Freight Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEX Biometrics position performs unexpectedly, Freight Technologies 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 Freight Technologies will offset losses from the drop in Freight Technologies' long position.| IDEX Biometrics vs. Issuer Direct Corp | IDEX Biometrics vs. eGain | IDEX Biometrics vs. Research Solutions | IDEX Biometrics vs. Ackroo Inc |
| Freight Technologies vs. Infobird Co | Freight Technologies vs. HeartCore Enterprises | Freight Technologies vs. CXApp Inc | Freight Technologies vs. Quhuo |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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