Correlation Between IDEX Biometrics and Freight Technologies

Can any of the company-specific risk be diversified away by investing in both IDEX Biometrics and Freight Technologies 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 Freight Technologies 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 Freight Technologies, you can compare the effects of market volatilities on IDEX Biometrics and Freight Technologies 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 Freight Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of IDEX Biometrics and Freight Technologies.

Diversification Opportunities for IDEX Biometrics and Freight Technologies

0.0

Correlation Coefficient

IDEX Biometrics  Freight Technologies

Pay attention - limited upside

The 3 months correlation between IDEX and Freight is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IDEX Biometrics ASA and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies 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 Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of IDEX Biometrics i.e., IDEX Biometrics and Freight Technologies go up and down completely randomly.

Pair Corralation between IDEX Biometrics and Freight Technologies

If you would invest (100.00) in IDEX Biometrics ASA on December 20, 2024 and sell it today you would earn a total of  100.00  from holding IDEX Biometrics ASA or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

IDEX Biometrics ASA  vs.  Freight Technologies

IDEX Biometrics ASA

Risk-Adjusted Performance

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 nearly stable basic indicators, IDEX Biometrics is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Freight Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with IDEX Biometrics and Freight Technologies

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

The idea behind IDEX Biometrics ASA and Freight Technologies 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.