Correlation Between Identiv and Nano Dimension
Can any of the company-specific risk be diversified away by investing in both Identiv and Nano Dimension 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 Identiv and Nano Dimension into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Nano Dimension, you can compare the effects of market volatilities on Identiv and Nano Dimension 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 Identiv with a short position of Nano Dimension. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Nano Dimension.
Diversification Opportunities for Identiv and Nano Dimension
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Identiv and Nano is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Nano Dimension in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano Dimension and Identiv 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 Identiv are associated (or correlated) with Nano Dimension. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano Dimension has no effect on the direction of Identiv i.e., Identiv and Nano Dimension go up and down completely randomly.
Pair Corralation between Identiv and Nano Dimension
Given the investment horizon of 90 days Identiv is expected to under-perform the Nano Dimension. In addition to that, Identiv is 1.26 times more volatile than Nano Dimension. It trades about -0.03 of its total potential returns per unit of risk. Nano Dimension is currently generating about 0.0 per unit of volatility. If you would invest 269.00 in Nano Dimension on August 27, 2024 and sell it today you would lose (58.00) from holding Nano Dimension or give up 21.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Nano Dimension
Performance |
| Timeline |
| Identiv |
| Nano Dimension |
Identiv and Nano Dimension Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Nano Dimension
The main advantage of trading using opposite Identiv and Nano Dimension positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Nano Dimension 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 Nano Dimension will offset losses from the drop in Nano Dimension's long position.| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
| Nano Dimension vs. Desktop Metal | Nano Dimension vs. 3D Systems | Nano Dimension vs. Markforged Holding Corp | Nano Dimension vs. Stratasys |
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.
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