Correlation Between WICKES GROUP and Identiv
Can any of the company-specific risk be diversified away by investing in both WICKES GROUP and Identiv 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 WICKES GROUP and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WICKES GROUP PLC and Identiv, you can compare the effects of market volatilities on WICKES GROUP and Identiv 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 WICKES GROUP with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of WICKES GROUP and Identiv.
Diversification Opportunities for WICKES GROUP and Identiv
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between WICKES and Identiv is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding WICKES GROUP PLC and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and WICKES GROUP 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 WICKES GROUP PLC are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of WICKES GROUP i.e., WICKES GROUP and Identiv go up and down completely randomly.
Pair Corralation between WICKES GROUP and Identiv
Assuming the 90 days horizon WICKES GROUP PLC is expected to generate 0.45 times more return on investment than Identiv. However, WICKES GROUP PLC is 2.22 times less risky than Identiv. It trades about 0.04 of its potential returns per unit of risk. Identiv is currently generating about 0.01 per unit of risk. If you would invest 140.00 in WICKES GROUP PLC on August 26, 2024 and sell it today you would earn a total of 35.00 from holding WICKES GROUP PLC or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
WICKES GROUP PLC vs. Identiv
Performance |
| Timeline |
| WICKES GROUP PLC |
| Identiv |
WICKES GROUP and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WICKES GROUP and Identiv
The main advantage of trading using opposite WICKES GROUP and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WICKES GROUP position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| WICKES GROUP vs. The Home Depot | WICKES GROUP vs. Superior Plus Corp | WICKES GROUP vs. NMI Holdings | WICKES GROUP vs. Origin Agritech |
| Identiv vs. COVIVIO HOTELS INH | Identiv vs. Alaska Air Group | Identiv vs. Hyatt Hotels | Identiv vs. LAir Liquide SA |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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