Correlation Between Pandora AS and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both Pandora AS and Fingerprint Cards 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 Pandora AS and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pandora AS and Fingerprint Cards AB, you can compare the effects of market volatilities on Pandora AS and Fingerprint Cards 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 Pandora AS with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pandora AS and Fingerprint Cards.
Diversification Opportunities for Pandora AS and Fingerprint Cards
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pandora and Fingerprint is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Pandora AS and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Pandora AS 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 Pandora AS are associated (or correlated) with Fingerprint Cards. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fingerprint Cards has no effect on the direction of Pandora AS i.e., Pandora AS and Fingerprint Cards go up and down completely randomly.
Pair Corralation between Pandora AS and Fingerprint Cards
Assuming the 90 days trading horizon Pandora AS is expected to generate 0.18 times more return on investment than Fingerprint Cards. However, Pandora AS is 5.66 times less risky than Fingerprint Cards. It trades about 0.24 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.18 per unit of risk. If you would invest 104,850 in Pandora AS on August 28, 2024 and sell it today you would earn a total of 7,500 from holding Pandora AS or generate 7.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pandora AS vs. Fingerprint Cards AB
Performance |
| Timeline |
| Pandora AS |
| Fingerprint Cards |
Pandora AS and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pandora AS and Fingerprint Cards
The main advantage of trading using opposite Pandora AS and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pandora AS position performs unexpectedly, Fingerprint Cards 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 Fingerprint Cards will offset losses from the drop in Fingerprint Cards' long position.| Pandora AS vs. Ralph Lauren Corp | Pandora AS vs. Tapestry | Pandora AS vs. PVH Corp | Pandora AS vs. Levi Strauss Co |
| Fingerprint Cards vs. Integrum AB Series | Fingerprint Cards vs. Concejo AB | Fingerprint Cards vs. Diadrom Holding AB | Fingerprint Cards vs. Greater Than AB |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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