Correlation Between Infinera and Identiv
Can any of the company-specific risk be diversified away by investing in both Infinera 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 Infinera and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Infinera and Identiv, you can compare the effects of market volatilities on Infinera 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 Infinera with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Infinera and Identiv.
Diversification Opportunities for Infinera and Identiv
Very good diversification
The 3 months correlation between Infinera and Identiv is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Infinera and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Infinera 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 Infinera 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 Infinera i.e., Infinera and Identiv go up and down completely randomly.
Pair Corralation between Infinera and Identiv
Given the investment horizon of 90 days Infinera is expected to generate 0.16 times more return on investment than Identiv. However, Infinera is 6.29 times less risky than Identiv. It trades about 0.15 of its potential returns per unit of risk. Identiv is currently generating about -0.05 per unit of risk. If you would invest 657.00 in Infinera on November 2, 2024 and sell it today you would earn a total of 7.00 from holding Infinera or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Infinera vs. Identiv
Performance |
| Timeline |
| Infinera |
| Identiv |
Infinera and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Infinera and Identiv
The main advantage of trading using opposite Infinera and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Infinera 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.| Infinera vs. Juniper Networks | Infinera vs. Lumentum Holdings | Infinera vs. Extreme Networks | Infinera vs. Clearfield |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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