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

-0.21

Correlation Coefficient

Pandora AS  Fingerprint Cards

Very good diversification

The 3 months correlation between Pandora and Fingerprint is -0.21. 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 0.5 times more return on investment than Fingerprint Cards. However, Pandora AS is 2.02 times less risky than Fingerprint Cards. It trades about 0.05 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.05 per unit of risk. If you would invest  110,850  in Pandora AS on March 25, 2025 and sell it today you would earn a total of  5,900  from holding Pandora AS or generate 5.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.31%
Values	Daily Returns

Pandora AS  vs.  Fingerprint Cards AB

Pandora AS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pandora AS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting fundamental indicators, Pandora AS may actually be approaching a critical reversion point that can send shares even higher in July 2025.

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 July 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

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.

The idea behind Pandora AS and Fingerprint Cards 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.