Correlation Between Byggmax Group and Identiv
Can any of the company-specific risk be diversified away by investing in both Byggmax 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 Byggmax Group and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byggmax Group AB and Identiv, you can compare the effects of market volatilities on Byggmax 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 Byggmax Group with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byggmax Group and Identiv.
Diversification Opportunities for Byggmax Group and Identiv
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Byggmax and Identiv is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Byggmax Group AB and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Byggmax 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 Byggmax Group AB 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 Byggmax Group i.e., Byggmax Group and Identiv go up and down completely randomly.
Pair Corralation between Byggmax Group and Identiv
Assuming the 90 days horizon Byggmax Group AB is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Byggmax Group AB is 1.22 times less risky than Identiv. The stock trades about -0.12 of its potential returns per unit of risk. The Identiv is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Identiv on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Identiv or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byggmax Group AB vs. Identiv
Performance |
| Timeline |
| Byggmax Group AB |
| Identiv |
Byggmax Group and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byggmax Group and Identiv
The main advantage of trading using opposite Byggmax Group and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byggmax 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.| Byggmax Group vs. Lowes Companies | Byggmax Group vs. Haverty Furniture Companies | Byggmax Group vs. Superior Plus Corp | Byggmax Group vs. NMI Holdings |
| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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