Correlation Between BII Railway and Identiv
Can any of the company-specific risk be diversified away by investing in both BII Railway 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 BII Railway and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BII Railway Transportation and Identiv, you can compare the effects of market volatilities on BII Railway 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 BII Railway with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of BII Railway and Identiv.
Diversification Opportunities for BII Railway and Identiv
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BII and Identiv is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding BII Railway Transportation and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and BII Railway 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 BII Railway Transportation 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 BII Railway i.e., BII Railway and Identiv go up and down completely randomly.
Pair Corralation between BII Railway and Identiv
Assuming the 90 days horizon BII Railway Transportation is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, BII Railway Transportation is 1.28 times less risky than Identiv. The stock trades about 0.0 of its potential returns per unit of risk. The Identiv is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 |
BII Railway Transportation vs. Identiv
Performance |
| Timeline |
| BII Railway Transpor |
| Identiv |
BII Railway and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BII Railway and Identiv
The main advantage of trading using opposite BII Railway and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BII Railway 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.| BII Railway vs. Accenture plc | BII Railway vs. International Business Machines | BII Railway vs. International Business Machines | BII Railway vs. Infosys Limited |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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