Correlation Between BROADWIND ENRGY and Identiv
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY 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 BROADWIND ENRGY and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and Identiv, you can compare the effects of market volatilities on BROADWIND ENRGY 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 BROADWIND ENRGY with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and Identiv.
Diversification Opportunities for BROADWIND ENRGY and Identiv
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between BROADWIND and Identiv is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and BROADWIND ENRGY 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 BROADWIND ENRGY 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 BROADWIND ENRGY i.e., BROADWIND ENRGY and Identiv go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and Identiv
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to under-perform the Identiv. In addition to that, BROADWIND ENRGY is 1.15 times more volatile than Identiv. It trades about -0.08 of its total potential returns per unit of risk. Identiv is currently generating about 0.0 per unit of volatility. If you would invest 377.00 in Identiv on October 30, 2024 and sell it today you would lose (31.00) from holding Identiv or give up 8.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADWIND ENRGY vs. Identiv
Performance |
| Timeline |
| BROADWIND ENRGY |
| Identiv |
BROADWIND ENRGY and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and Identiv
The main advantage of trading using opposite BROADWIND ENRGY and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY 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.| BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc |
| Identiv vs. Geely Automobile Holdings | Identiv vs. Aegean Airlines SA | Identiv vs. SOUTHWEST AIRLINES | Identiv vs. SINGAPORE AIRLINES |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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