Correlation Between Hyster-Yale Materials and Identiv
Can any of the company-specific risk be diversified away by investing in both Hyster-Yale Materials 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 Hyster-Yale Materials and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Identiv, you can compare the effects of market volatilities on Hyster-Yale Materials 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 Hyster-Yale Materials with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster-Yale Materials and Identiv.
Diversification Opportunities for Hyster-Yale Materials and Identiv
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hyster-Yale and Identiv is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Hyster-Yale Materials 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 Hyster Yale Materials Handling 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 Hyster-Yale Materials i.e., Hyster-Yale Materials and Identiv go up and down completely randomly.
Pair Corralation between Hyster-Yale Materials and Identiv
Assuming the 90 days trading horizon Hyster Yale Materials Handling is expected to under-perform the Identiv. In addition to that, Hyster-Yale Materials is 1.33 times more volatile than Identiv. It trades about -0.12 of its total potential returns per unit of risk. Identiv is currently generating about 0.23 per unit of volatility. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Identiv
Performance |
| Timeline |
| Hyster Yale Materials |
| Identiv |
Hyster-Yale Materials and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster-Yale Materials and Identiv
The main advantage of trading using opposite Hyster-Yale Materials and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster-Yale Materials 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.| Hyster-Yale Materials vs. KION Group AG | Hyster-Yale Materials vs. Superior Plus Corp | Hyster-Yale Materials vs. NMI Holdings | Hyster-Yale Materials vs. Origin Agritech |
| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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