Correlation Between IDEX Biometrics and Nogin
Can any of the company-specific risk be diversified away by investing in both IDEX Biometrics and Nogin 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 Nogin 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 Nogin Inc, you can compare the effects of market volatilities on IDEX Biometrics and Nogin 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 Nogin. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEX Biometrics and Nogin.
Diversification Opportunities for IDEX Biometrics and Nogin
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IDEX and Nogin is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding IDEX Biometrics ASA and Nogin Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nogin Inc 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 Nogin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nogin Inc has no effect on the direction of IDEX Biometrics i.e., IDEX Biometrics and Nogin go up and down completely randomly.
Pair Corralation between IDEX Biometrics and Nogin
If you would invest 1.28 in Nogin Inc on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Nogin Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IDEX Biometrics ASA vs. Nogin Inc
Performance |
| Timeline |
| IDEX Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Nogin Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
IDEX Biometrics and Nogin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IDEX Biometrics and Nogin
The main advantage of trading using opposite IDEX Biometrics and Nogin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IDEX Biometrics position performs unexpectedly, Nogin 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 Nogin will offset losses from the drop in Nogin's long position.| IDEX Biometrics vs. Issuer Direct Corp | IDEX Biometrics vs. eGain | IDEX Biometrics vs. Research Solutions | IDEX Biometrics vs. Ackroo 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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