Correlation Between Idex Biometrics and Expensify

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

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

Diversification Opportunities for Idex Biometrics and Expensify

0.06

Correlation Coefficient

Idex Biometrics  Expensify

Significant diversification

The 3 months correlation between Idex and Expensify is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Idex Biometrics ASA and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify and Idex Biometrics 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 Idex Biometrics ASA are associated (or correlated) with Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Idex Biometrics i.e., Idex Biometrics and Expensify go up and down completely randomly.

Pair Corralation between Idex Biometrics and Expensify

If you would invest  232.00  in Expensify on August 30, 2024 and sell it today you would earn a total of  102.00  from holding Expensify or generate 43.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Idex Biometrics ASA  vs.  Expensify

Idex Biometrics ASA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Idex Biometrics ASA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, Idex Biometrics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Expensify

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Expensify showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Idex Biometrics and Expensify

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

The idea behind Idex Biometrics ASA and Expensify 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.