Correlation Between Dis Fastigheter and Identiv
Can any of the company-specific risk be diversified away by investing in both Dis Fastigheter 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 Dis Fastigheter and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dis Fastigheter AB and Identiv, you can compare the effects of market volatilities on Dis Fastigheter 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 Dis Fastigheter with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dis Fastigheter and Identiv.
Diversification Opportunities for Dis Fastigheter and Identiv
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Dis and Identiv is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Dis Fastigheter AB and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Dis Fastigheter 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 Dis Fastigheter 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 Dis Fastigheter i.e., Dis Fastigheter and Identiv go up and down completely randomly.
Pair Corralation between Dis Fastigheter and Identiv
Assuming the 90 days horizon Dis Fastigheter AB is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Dis Fastigheter AB is 1.77 times less risky than Identiv. The stock trades about -0.15 of its potential returns per unit of risk. The Identiv is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Identiv on August 25, 2024 and sell it today you would earn a total of 23.00 from holding Identiv or generate 6.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dis Fastigheter AB vs. Identiv
Performance |
| Timeline |
| Dis Fastigheter AB |
| Identiv |
Dis Fastigheter and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dis Fastigheter and Identiv
The main advantage of trading using opposite Dis Fastigheter and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dis Fastigheter 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.| Dis Fastigheter vs. Superior Plus Corp | Dis Fastigheter vs. NMI Holdings | Dis Fastigheter vs. Origin Agritech | Dis Fastigheter vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. COVIVIO HOTELS INH | Identiv vs. Alaska Air Group | Identiv vs. Hyatt Hotels | Identiv vs. LAir Liquide SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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