Correlation Between Identiv and WICKES GROUP
Can any of the company-specific risk be diversified away by investing in both Identiv and WICKES GROUP 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 WICKES GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and WICKES GROUP PLC, you can compare the effects of market volatilities on Identiv and WICKES GROUP 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 WICKES GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and WICKES GROUP.
Diversification Opportunities for Identiv and WICKES GROUP
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Identiv and WICKES is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and WICKES GROUP PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WICKES GROUP PLC 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 WICKES GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WICKES GROUP PLC has no effect on the direction of Identiv i.e., Identiv and WICKES GROUP go up and down completely randomly.
Pair Corralation between Identiv and WICKES GROUP
Assuming the 90 days trading horizon Identiv is expected to generate 2.64 times less return on investment than WICKES GROUP. In addition to that, Identiv is 2.22 times more volatile than WICKES GROUP PLC. It trades about 0.01 of its total potential returns per unit of risk. WICKES GROUP PLC is currently generating about 0.04 per unit of volatility. If you would invest 140.00 in WICKES GROUP PLC on August 26, 2024 and sell it today you would earn a total of 35.00 from holding WICKES GROUP PLC or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. WICKES GROUP PLC
Performance |
| Timeline |
| Identiv |
| WICKES GROUP PLC |
Identiv and WICKES GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and WICKES GROUP
The main advantage of trading using opposite Identiv and WICKES GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, WICKES GROUP 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 WICKES GROUP will offset losses from the drop in WICKES GROUP's long position.| Identiv vs. COVIVIO HOTELS INH | Identiv vs. Alaska Air Group | Identiv vs. Hyatt Hotels | Identiv vs. LAir Liquide SA |
| WICKES GROUP vs. The Home Depot | WICKES GROUP vs. Superior Plus Corp | WICKES GROUP vs. NMI Holdings | WICKES GROUP vs. Origin Agritech |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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