Correlation Between Modern Times and Precise Biometrics

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

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

Diversification Opportunities for Modern Times and Precise Biometrics

-0.5

Correlation Coefficient

Modern Times  Precise Biometrics

Very good diversification

The 3 months correlation between Modern and Precise is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Modern Times Group and Precise Biometrics AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precise Biometrics and Modern Times 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 Modern Times Group 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 Modern Times i.e., Modern Times and Precise Biometrics go up and down completely randomly.

Pair Corralation between Modern Times and Precise Biometrics

If you would invest  129.00  in Precise Biometrics AB on April 24, 2025 and sell it today you would earn a total of  180.00  from holding Precise Biometrics AB or generate 139.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	0.0%
Values	Daily Returns

Modern Times Group  vs.  Precise Biometrics AB

Modern Times Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Modern Times Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 Modern Times and Precise Biometrics

The main advantage of trading using opposite Modern Times and Precise Biometrics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Modern Times 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 Modern Times Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.