Correlation Between Fuji Media and Identiv
Can any of the company-specific risk be diversified away by investing in both Fuji Media 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 Fuji Media and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fuji Media Holdings and Identiv, you can compare the effects of market volatilities on Fuji Media 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 Fuji Media with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fuji Media and Identiv.
Diversification Opportunities for Fuji Media and Identiv
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Fuji and Identiv is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Fuji Media Holdings and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Fuji Media 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 Fuji Media Holdings 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 Fuji Media i.e., Fuji Media and Identiv go up and down completely randomly.
Pair Corralation between Fuji Media and Identiv
Assuming the 90 days horizon Fuji Media Holdings is expected to generate 0.51 times more return on investment than Identiv. However, Fuji Media Holdings is 1.96 times less risky than Identiv. It trades about 0.05 of its potential returns per unit of risk. Identiv is currently generating about -0.01 per unit of risk. If you would invest 725.00 in Fuji Media Holdings on September 2, 2024 and sell it today you would earn a total of 345.00 from holding Fuji Media Holdings or generate 47.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fuji Media Holdings vs. Identiv
Performance |
| Timeline |
| Fuji Media Holdings |
| Identiv |
Fuji Media and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fuji Media and Identiv
The main advantage of trading using opposite Fuji Media and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fuji Media 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.| Fuji Media vs. Rai Way SpA | Fuji Media vs. Superior Plus Corp | Fuji Media vs. NMI Holdings | Fuji Media vs. Origin Agritech |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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