Correlation Between Bong AB and Precise Biometrics

Can any of the company-specific risk be diversified away by investing in both Bong AB and Precise 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 Bong AB and Precise Biometrics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bong AB and Precise Biometrics AB, you can compare the effects of market volatilities on Bong AB and Precise 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 Bong AB with a short position of Precise Biometrics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bong AB and Precise Biometrics.

Diversification Opportunities for Bong AB and Precise Biometrics

0.08

Correlation Coefficient

Bong AB  Precise Biometrics

Significant diversification

The 3 months correlation between Bong and Precise is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Bong AB and Precise Biometrics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precise Biometrics and Bong AB 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 Bong AB are associated (or correlated) with Precise Biometrics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precise Biometrics has no effect on the direction of Bong AB i.e., Bong AB and Precise Biometrics go up and down completely randomly.

Pair Corralation between Bong AB and Precise Biometrics

Assuming the 90 days trading horizon Bong AB is expected to generate 0.79 times more return on investment than Precise Biometrics. However, Bong AB is 1.27 times less risky than Precise Biometrics. It trades about 0.04 of its potential returns per unit of risk. Precise Biometrics AB is currently generating about -0.1 per unit of risk. If you would invest  68.00  in Bong AB on April 23, 2025 and sell it today you would earn a total of  3.00  from holding Bong AB or generate 4.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Bong AB  vs.  Precise Biometrics AB

Bong AB

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bong AB are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Bong AB may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Precise Biometrics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Precise Biometrics AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Bong AB and Precise Biometrics

The main advantage of trading using opposite Bong AB and Precise Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bong AB position performs unexpectedly, Precise 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 Precise Biometrics will offset losses from the drop in Precise Biometrics' long position.

The idea behind Bong AB and Precise Biometrics AB 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.