Correlation Between AECOM and Identiv
Can any of the company-specific risk be diversified away by investing in both AECOM 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 AECOM and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AECOM and Identiv, you can compare the effects of market volatilities on AECOM 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 AECOM with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of AECOM and Identiv.
Diversification Opportunities for AECOM and Identiv
Almost no diversification
The 3 months correlation between AECOM and Identiv is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding AECOM and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and AECOM 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 AECOM 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 AECOM i.e., AECOM and Identiv go up and down completely randomly.
Pair Corralation between AECOM and Identiv
Assuming the 90 days horizon AECOM is expected to generate 1.13 times less return on investment than Identiv. But when comparing it to its historical volatility, AECOM is 1.15 times less risky than Identiv. It trades about 0.19 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 Together |
Strength | Very Strong |
Accuracy | 95.65% |
Values | Daily Returns |
AECOM vs. Identiv
Performance |
Timeline |
AECOM |
Identiv |
AECOM and Identiv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AECOM and Identiv
The main advantage of trading using opposite AECOM and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AECOM 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.AECOM vs. Sixt Leasing SE | AECOM vs. FRACTAL GAMING GROUP | AECOM vs. VITEC SOFTWARE GROUP | AECOM vs. Boyd Gaming |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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