Correlation Between Fingerprint Cards and Idex ASA

Can any of the company-specific risk be diversified away by investing in both Fingerprint Cards and Idex ASA 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 Fingerprint Cards and Idex ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Fingerprint Cards and Idex ASA

0.37

Correlation Coefficient

Fingerprint Cards  Idex ASA

Weak diversification

The 3 months correlation between Fingerprint and Idex is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Fingerprint Cards AB and Idex ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Idex ASA and Fingerprint Cards 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 Fingerprint Cards AB are associated (or correlated) with Idex ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Idex ASA has no effect on the direction of Fingerprint Cards i.e., Fingerprint Cards and Idex ASA go up and down completely randomly.

Pair Corralation between Fingerprint Cards and Idex ASA

Assuming the 90 days trading horizon Fingerprint Cards AB is expected to under-perform the Idex ASA. But the stock apears to be less risky and, when comparing its historical volatility, Fingerprint Cards AB is 1.29 times less risky than Idex ASA. The stock trades about -0.04 of its potential returns per unit of risk. The Idex ASA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  405.00  in Idex ASA on April 24, 2025 and sell it today you would lose (72.00) from holding Idex ASA or give up 17.78% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Fingerprint Cards AB  vs.  Idex ASA

Fingerprint Cards

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fingerprint Cards AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Idex ASA

Risk-Adjusted Performance

Very Weak

Over the last 90 days Idex ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite conflicting essential indicators, Idex ASA may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Fingerprint Cards and Idex ASA

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

The idea behind Fingerprint Cards AB and Idex 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.

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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.