Correlation Between Moderna and Identiv
Can any of the company-specific risk be diversified away by investing in both Moderna 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 Moderna and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Moderna and Identiv, you can compare the effects of market volatilities on Moderna 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 Moderna with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Moderna and Identiv.
Diversification Opportunities for Moderna and Identiv
Pay attention - limited upside
The 3 months correlation between Moderna and Identiv is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Moderna and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Moderna 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 Moderna 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 Moderna i.e., Moderna and Identiv go up and down completely randomly.
Pair Corralation between Moderna and Identiv
Assuming the 90 days horizon Moderna is expected to under-perform the Identiv. In addition to that, Moderna is 1.04 times more volatile than Identiv. It trades about -0.1 of its total potential returns per unit of risk. Identiv is currently generating about -0.04 per unit of volatility. If you would invest 523.00 in Identiv on September 4, 2024 and sell it today you would lose (163.00) from holding Identiv or give up 31.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.42% |
| Values | Daily Returns |
Moderna vs. Identiv
Performance |
| Timeline |
| Moderna |
| Identiv |
Moderna and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Moderna and Identiv
The main advantage of trading using opposite Moderna and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Moderna 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.| Moderna vs. Mercedes Benz Group AG | Moderna vs. BioNTech SE | Moderna vs. Superior Plus Corp | Moderna vs. NMI Holdings |
| Identiv vs. SEALED AIR | Identiv vs. WIZZ AIR HLDGUNSPADR4 | Identiv vs. Alaska Air Group | Identiv vs. FORWARD AIR P |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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