Correlation Between Spectrumone Publ and Fingerprint Cards

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

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

Diversification Opportunities for Spectrumone Publ and Fingerprint Cards

-0.22

Correlation Coefficient

Spectrumone Publ  Fingerprint Cards

Very good diversification

The 3 months correlation between Spectrumone and Fingerprint is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Spectrumone publ AB and Fingerprint Cards AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fingerprint Cards and Spectrumone Publ 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 Spectrumone publ AB 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 Spectrumone Publ i.e., Spectrumone Publ and Fingerprint Cards go up and down completely randomly.

Pair Corralation between Spectrumone Publ and Fingerprint Cards

Assuming the 90 days trading horizon Spectrumone publ AB is expected to generate 0.66 times more return on investment than Fingerprint Cards. However, Spectrumone publ AB is 1.51 times less risky than Fingerprint Cards. It trades about -0.02 of its potential returns per unit of risk. Fingerprint Cards AB is currently generating about -0.03 per unit of risk. If you would invest  27.00  in Spectrumone publ AB on April 23, 2025 and sell it today you would lose (3.00) from holding Spectrumone publ AB or give up 11.11% of portfolio value over 90 days.

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

Spectrumone publ AB  vs.  Fingerprint Cards AB

Spectrumone publ

Risk-Adjusted Performance

Very Weak

Over the last 90 days Spectrumone publ AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Spectrumone Publ is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

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.

Pair Trading with Spectrumone Publ and Fingerprint Cards

The main advantage of trading using opposite Spectrumone Publ and Fingerprint Cards positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spectrumone Publ 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 Spectrumone publ AB 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.