Correlation Between Shoprite Holdings and Identiv
Can any of the company-specific risk be diversified away by investing in both Shoprite Holdings 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 Shoprite Holdings and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shoprite Holdings Limited and Identiv, you can compare the effects of market volatilities on Shoprite Holdings 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 Shoprite Holdings with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shoprite Holdings and Identiv.
Diversification Opportunities for Shoprite Holdings and Identiv
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shoprite and Identiv is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shoprite Holdings Limited and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Shoprite Holdings 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 Shoprite Holdings Limited 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 Shoprite Holdings i.e., Shoprite Holdings and Identiv go up and down completely randomly.
Pair Corralation between Shoprite Holdings and Identiv
Assuming the 90 days horizon Shoprite Holdings Limited is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Shoprite Holdings Limited is 2.1 times less risky than Identiv. The stock trades about -0.01 of its potential returns per unit of risk. The 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Shoprite Holdings Limited vs. Identiv
Performance |
| Timeline |
| Shoprite Holdings |
| Identiv |
Shoprite Holdings and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shoprite Holdings and Identiv
The main advantage of trading using opposite Shoprite Holdings and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shoprite Holdings 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.| Shoprite Holdings vs. AIR PRODCHEMICALS | Shoprite Holdings vs. PTT Global Chemical | Shoprite Holdings vs. Silicon Motion Technology | Shoprite Holdings vs. BRIT AMER TOBACCO |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |