Correlation Between OLB and Idex Biometrics
Can any of the company-specific risk be diversified away by investing in both OLB and Idex Biometrics 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 OLB and Idex Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OLB Group and Idex Biometrics ASA, you can compare the effects of market volatilities on OLB and Idex Biometrics 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 OLB with a short position of Idex Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of OLB and Idex Biometrics.
Diversification Opportunities for OLB and Idex Biometrics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between OLB and Idex is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding OLB Group and Idex Biometrics ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idex Biometrics ASA and OLB 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 OLB Group are associated (or correlated) with Idex Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idex Biometrics ASA has no effect on the direction of OLB i.e., OLB and Idex Biometrics go up and down completely randomly.
Pair Corralation between OLB and Idex Biometrics
If you would invest 481.00 in Idex Biometrics ASA on August 28, 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 Together |
| Strength | Very Weak |
| Accuracy | 2.33% |
| Values | Daily Returns |
OLB Group vs. Idex Biometrics ASA
Performance |
| Timeline |
| OLB Group |
| Idex Biometrics ASA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
OLB and Idex Biometrics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OLB and Idex Biometrics
The main advantage of trading using opposite OLB and Idex Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OLB position performs unexpectedly, Idex Biometrics 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 Idex Biometrics will offset losses from the drop in Idex Biometrics' long position.The idea behind OLB Group and Idex Biometrics ASA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |