Correlation Between Altia Oyj and Identiv

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Altia Oyj 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 Altia Oyj and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Altia Oyj and Identiv, you can compare the effects of market volatilities on Altia Oyj 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 Altia Oyj with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Altia Oyj and Identiv.

Diversification Opportunities for Altia Oyj and Identiv

-0.85
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Altia and Identiv is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Altia Oyj and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Altia Oyj 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 Altia Oyj 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 Altia Oyj i.e., Altia Oyj and Identiv go up and down completely randomly.

Pair Corralation between Altia Oyj and Identiv

Assuming the 90 days horizon Altia Oyj is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Altia Oyj is 2.02 times less risky than Identiv. The stock trades about -0.55 of its potential returns per unit of risk. The Identiv is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  322.00  in Identiv on August 29, 2024 and sell it today you would earn a total of  49.00  from holding Identiv or generate 15.22% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Altia Oyj  vs.  Identiv

 Performance 
       Timeline  
Altia Oyj 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Altia Oyj has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Identiv 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Identiv reported solid returns over the last few months and may actually be approaching a breakup point.

Altia Oyj and Identiv Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Altia Oyj and Identiv

The main advantage of trading using opposite Altia Oyj and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Altia Oyj 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.
The idea behind Altia Oyj and Identiv 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.
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital