Correlation Between Identiv and MSCI
Can any of the company-specific risk be diversified away by investing in both Identiv and MSCI 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 MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and MSCI Inc, you can compare the effects of market volatilities on Identiv and MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and MSCI.
Diversification Opportunities for Identiv and MSCI
Poor diversification
The 3 months correlation between Identiv and MSCI is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and MSCI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI Inc 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI Inc has no effect on the direction of Identiv i.e., Identiv and MSCI go up and down completely randomly.
Pair Corralation between Identiv and MSCI
Assuming the 90 days trading horizon Identiv is expected to under-perform the MSCI. In addition to that, Identiv is 2.29 times more volatile than MSCI Inc. It trades about -0.01 of its total potential returns per unit of risk. MSCI Inc is currently generating about 0.03 per unit of volatility. If you would invest 46,246 in MSCI Inc on August 29, 2024 and sell it today you would earn a total of 11,254 from holding MSCI Inc or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. MSCI Inc
Performance |
| Timeline |
| Identiv |
| MSCI Inc |
Identiv and MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and MSCI
The main advantage of trading using opposite Identiv and MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, MSCI 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 MSCI will offset losses from the drop in MSCI's long position.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| MSCI vs. Macquarie Group Limited | MSCI vs. Superior Plus Corp | MSCI vs. NMI Holdings | MSCI 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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