Correlation Between CN YANGTPWR and Identiv
Can any of the company-specific risk be diversified away by investing in both CN YANGTPWR 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 CN YANGTPWR and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CN YANGTPWR GDR and Identiv, you can compare the effects of market volatilities on CN YANGTPWR 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 CN YANGTPWR with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of CN YANGTPWR and Identiv.
Diversification Opportunities for CN YANGTPWR and Identiv
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CYZB and Identiv is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding CN YANGTPWR GDR and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and CN YANGTPWR 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 CN YANGTPWR GDR 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 CN YANGTPWR i.e., CN YANGTPWR and Identiv go up and down completely randomly.
Pair Corralation between CN YANGTPWR and Identiv
Assuming the 90 days trading horizon CN YANGTPWR is expected to generate 103.83 times less return on investment than Identiv. But when comparing it to its historical volatility, CN YANGTPWR GDR is 2.93 times less risky than Identiv. It trades about 0.01 of its potential returns per unit of risk. Identiv is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 320.00 in Identiv on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Identiv or generate 13.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CN YANGTPWR GDR vs. Identiv
Performance |
| Timeline |
| CN YANGTPWR GDR |
| Identiv |
CN YANGTPWR and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CN YANGTPWR and Identiv
The main advantage of trading using opposite CN YANGTPWR and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CN YANGTPWR 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.| CN YANGTPWR vs. Pick n Pay | CN YANGTPWR vs. Clean Energy Fuels | CN YANGTPWR vs. TFS FINANCIAL | CN YANGTPWR vs. QURATE RETAIL INC |
| Identiv vs. ANTA SPORTS PRODUCT | Identiv vs. PLAYTIKA HOLDING DL 01 | Identiv vs. CNVISION MEDIA | Identiv vs. PARKEN Sport Entertainment |
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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