Correlation Between Enphase Energy and Identiv
Can any of the company-specific risk be diversified away by investing in both Enphase Energy 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 Enphase Energy and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enphase Energy and Identiv, you can compare the effects of market volatilities on Enphase Energy 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 Enphase Energy with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enphase Energy and Identiv.
Diversification Opportunities for Enphase Energy and Identiv
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Enphase and Identiv is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Enphase Energy and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Enphase Energy 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 Enphase Energy 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 Enphase Energy i.e., Enphase Energy and Identiv go up and down completely randomly.
Pair Corralation between Enphase Energy and Identiv
Given the investment horizon of 90 days Enphase Energy is expected to under-perform the Identiv. In addition to that, Enphase Energy is 1.56 times more volatile than Identiv. It trades about -0.22 of its total potential returns per unit of risk. Identiv is currently generating about 0.09 per unit of volatility. If you would invest 349.00 in Identiv on August 23, 2024 and sell it today you would earn a total of 46.00 from holding Identiv or generate 13.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enphase Energy vs. Identiv
Performance |
| Timeline |
| Enphase Energy |
| Identiv |
Enphase Energy and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enphase Energy and Identiv
The main advantage of trading using opposite Enphase Energy and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enphase Energy 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.| Enphase Energy vs. Small Cap Core | Enphase Energy vs. Freedom Holding Corp | Enphase Energy vs. Gfl Environmental Holdings | Enphase Energy vs. Growth Fund Of |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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