Correlation Between Identiv and STRC Old
Can any of the company-specific risk be diversified away by investing in both Identiv and STRC Old 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 STRC Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and STRC Old, you can compare the effects of market volatilities on Identiv and STRC Old 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 STRC Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and STRC Old.
Diversification Opportunities for Identiv and STRC Old
Excellent diversification
The 3 months correlation between Identiv and STRC is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and STRC Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRC Old 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 STRC Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRC Old has no effect on the direction of Identiv i.e., Identiv and STRC Old go up and down completely randomly.
Pair Corralation between Identiv and STRC Old
Given the investment horizon of 90 days Identiv is expected to generate 0.55 times more return on investment than STRC Old. However, Identiv is 1.82 times less risky than STRC Old. It trades about -0.02 of its potential returns per unit of risk. STRC Old is currently generating about -0.09 per unit of risk. If you would invest 777.00 in Identiv on August 27, 2024 and sell it today you would lose (381.00) from holding Identiv or give up 49.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.85% |
| Values | Daily Returns |
Identiv vs. STRC Old
Performance |
| Timeline |
| Identiv |
| STRC Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Identiv and STRC Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and STRC Old
The main advantage of trading using opposite Identiv and STRC Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, STRC Old 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 STRC Old will offset losses from the drop in STRC Old's long position.| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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