Correlation Between Identiv and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both Identiv and SANOK RUBBER 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 SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and SANOK RUBBER ZY, you can compare the effects of market volatilities on Identiv and SANOK RUBBER 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 SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and SANOK RUBBER.
Diversification Opportunities for Identiv and SANOK RUBBER
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Identiv and SANOK is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY 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 SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of Identiv i.e., Identiv and SANOK RUBBER go up and down completely randomly.
Pair Corralation between Identiv and SANOK RUBBER
Assuming the 90 days trading horizon Identiv is expected to under-perform the SANOK RUBBER. In addition to that, Identiv is 1.45 times more volatile than SANOK RUBBER ZY. It trades about -0.01 of its total potential returns per unit of risk. SANOK RUBBER ZY is currently generating about 0.08 per unit of volatility. If you would invest 166.00 in SANOK RUBBER ZY on September 2, 2024 and sell it today you would earn a total of 279.00 from holding SANOK RUBBER ZY or generate 168.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. SANOK RUBBER ZY
Performance |
| Timeline |
| Identiv |
| SANOK RUBBER ZY |
Identiv and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and SANOK RUBBER
The main advantage of trading using opposite Identiv and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| Identiv vs. SBA Communications Corp | Identiv vs. Verizon Communications | Identiv vs. Iridium Communications | Identiv vs. THORNEY TECHS LTD |
| SANOK RUBBER vs. T Mobile | SANOK RUBBER vs. National Bank Holdings | SANOK RUBBER vs. The Hanover Insurance | SANOK RUBBER vs. JSC Halyk bank |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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