Correlation Between Identiv and Virtu Financial
Can any of the company-specific risk be diversified away by investing in both Identiv and Virtu Financial 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 Virtu Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Virtu Financial, you can compare the effects of market volatilities on Identiv and Virtu Financial 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 Virtu Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Virtu Financial.
Diversification Opportunities for Identiv and Virtu Financial
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Identiv and Virtu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Virtu Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtu Financial 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 Virtu Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtu Financial has no effect on the direction of Identiv i.e., Identiv and Virtu Financial go up and down completely randomly.
Pair Corralation between Identiv and Virtu Financial
Assuming the 90 days trading horizon Identiv is expected to generate 2.57 times less return on investment than Virtu Financial. In addition to that, Identiv is 1.74 times more volatile than Virtu Financial. It trades about 0.04 of its total potential returns per unit of risk. Virtu Financial is currently generating about 0.19 per unit of volatility. If you would invest 3,480 in Virtu Financial on October 29, 2024 and sell it today you would earn a total of 240.00 from holding Virtu Financial or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Virtu Financial
Performance |
| Timeline |
| Identiv |
| Virtu Financial |
Identiv and Virtu Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Virtu Financial
The main advantage of trading using opposite Identiv and Virtu Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Virtu Financial 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 Virtu Financial will offset losses from the drop in Virtu Financial's long position.| Identiv vs. China Reinsurance | Identiv vs. Carsales | Identiv vs. MARKET VECTR RETAIL | Identiv vs. SIDETRADE EO 1 |
| Virtu Financial vs. MAVEN WIRELESS SWEDEN | Virtu Financial vs. AGRICULTBK HADR25 YC | Virtu Financial vs. Daito Trust Construction | Virtu Financial vs. ALEFARM BREWING DK 05 |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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