Correlation Between FRESENIUS SECO and Identiv
Can any of the company-specific risk be diversified away by investing in both FRESENIUS SECO 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 FRESENIUS SECO and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRESENIUS SECO ADR and Identiv, you can compare the effects of market volatilities on FRESENIUS SECO 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 FRESENIUS SECO with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRESENIUS SECO and Identiv.
Diversification Opportunities for FRESENIUS SECO and Identiv
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FRESENIUS and Identiv is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding FRESENIUS SECO ADR and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and FRESENIUS SECO 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 FRESENIUS SECO ADR 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 FRESENIUS SECO i.e., FRESENIUS SECO and Identiv go up and down completely randomly.
Pair Corralation between FRESENIUS SECO and Identiv
Assuming the 90 days trading horizon FRESENIUS SECO ADR is expected to generate 0.43 times more return on investment than Identiv. However, FRESENIUS SECO ADR is 2.33 times less risky than Identiv. It trades about 0.07 of its potential returns per unit of risk. Identiv is currently generating about 0.01 per unit of risk. If you would invest 715.00 in FRESENIUS SECO ADR on September 3, 2024 and sell it today you would earn a total of 95.00 from holding FRESENIUS SECO ADR or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FRESENIUS SECO ADR vs. Identiv
Performance |
| Timeline |
| FRESENIUS SECO ADR |
| Identiv |
FRESENIUS SECO and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRESENIUS SECO and Identiv
The main advantage of trading using opposite FRESENIUS SECO and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRESENIUS SECO 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.| FRESENIUS SECO vs. Superior Plus Corp | FRESENIUS SECO vs. NMI Holdings | FRESENIUS SECO vs. Origin Agritech | FRESENIUS SECO vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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