Correlation Between SaltX Technology and Fingerprint Cards
Can any of the company-specific risk be diversified away by investing in both SaltX Technology 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 SaltX Technology and Fingerprint Cards into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SaltX Technology Holding and Fingerprint Cards AB, you can compare the effects of market volatilities on SaltX Technology 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 SaltX Technology with a short position of Fingerprint Cards. Check out your portfolio center. Please also check ongoing floating volatility patterns of SaltX Technology and Fingerprint Cards.
Diversification Opportunities for SaltX Technology and Fingerprint Cards
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SaltX and Fingerprint is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SaltX Technology Holding and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and SaltX Technology 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 SaltX Technology Holding 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 SaltX Technology i.e., SaltX Technology and Fingerprint Cards go up and down completely randomly.
Pair Corralation between SaltX Technology and Fingerprint Cards
Assuming the 90 days trading horizon SaltX Technology Holding is expected to generate 0.24 times more return on investment than Fingerprint Cards. However, SaltX Technology Holding is 4.17 times less risky than Fingerprint Cards. It trades about 0.03 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.06 per unit of risk. If you would invest 341.00 in SaltX Technology Holding on October 25, 2024 and sell it today you would earn a total of 7.00 from holding SaltX Technology Holding or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
SaltX Technology Holding vs. Fingerprint Cards AB
Performance |
| Timeline |
| SaltX Technology Holding |
| Fingerprint Cards |
SaltX Technology and Fingerprint Cards Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SaltX Technology and Fingerprint Cards
The main advantage of trading using opposite SaltX Technology and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SaltX Technology 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.| SaltX Technology vs. GomSpace Group AB | SaltX Technology vs. Fingerprint Cards AB | SaltX Technology vs. Maha Energy AB | SaltX Technology vs. SolTech Energy Sweden |
| Fingerprint Cards vs. GomSpace Group AB | Fingerprint Cards vs. Precise Biometrics AB | Fingerprint Cards vs. Pandora AS | Fingerprint Cards vs. Bavarian Nordic |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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