Correlation Between Identiv and VOXX International
Can any of the company-specific risk be diversified away by investing in both Identiv and VOXX International 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 VOXX International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and VOXX International, you can compare the effects of market volatilities on Identiv and VOXX International 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 VOXX International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and VOXX International.
Diversification Opportunities for Identiv and VOXX International
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Identiv and VOXX is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and VOXX International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VOXX International 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 VOXX International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VOXX International has no effect on the direction of Identiv i.e., Identiv and VOXX International go up and down completely randomly.
Pair Corralation between Identiv and VOXX International
Given the investment horizon of 90 days Identiv is expected to under-perform the VOXX International. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.53 times less risky than VOXX International. The stock trades about -0.04 of its potential returns per unit of risk. The VOXX International is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,251 in VOXX International on August 28, 2024 and sell it today you would lose (487.00) from holding VOXX International or give up 38.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. VOXX International
Performance |
| Timeline |
| Identiv |
| VOXX International |
Identiv and VOXX International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and VOXX International
The main advantage of trading using opposite Identiv and VOXX International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, VOXX International 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 VOXX International will offset losses from the drop in VOXX International's long position.| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
| VOXX International vs. LG Display Co | VOXX International vs. Wearable Devices | VOXX International vs. Universal Electronics | VOXX International vs. Samsung Electronics Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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