Correlation Between Cambex Corp and Identiv
Can any of the company-specific risk be diversified away by investing in both Cambex Corp 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 Cambex Corp and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cambex Corp and Identiv, you can compare the effects of market volatilities on Cambex Corp 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 Cambex Corp with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cambex Corp and Identiv.
Diversification Opportunities for Cambex Corp and Identiv
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cambex and Identiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cambex Corp and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Cambex Corp 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 Cambex Corp 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 Cambex Corp i.e., Cambex Corp and Identiv go up and down completely randomly.
Pair Corralation between Cambex Corp and Identiv
Given the investment horizon of 90 days Cambex Corp is expected to under-perform the Identiv. In addition to that, Cambex Corp is 1.48 times more volatile than Identiv. It trades about -0.05 of its total potential returns per unit of risk. Identiv is currently generating about -0.04 per unit of volatility. If you would invest 826.00 in Identiv on September 12, 2024 and sell it today you would lose (409.00) from holding Identiv or give up 49.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cambex Corp vs. Identiv
Performance |
| Timeline |
| Cambex Corp |
| Identiv |
Cambex Corp and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cambex Corp and Identiv
The main advantage of trading using opposite Cambex Corp and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cambex Corp 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.| Cambex Corp vs. TransAct Technologies Incorporated | Cambex Corp vs. Identiv | Cambex Corp vs. AGM Group Holdings | Cambex Corp vs. AstroNova |
| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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