Correlation Between Identiv and Postal Savings
Can any of the company-specific risk be diversified away by investing in both Identiv and Postal Savings 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 Postal Savings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Postal Savings Bank, you can compare the effects of market volatilities on Identiv and Postal Savings 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 Postal Savings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Postal Savings.
Diversification Opportunities for Identiv and Postal Savings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Identiv and Postal is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Postal Savings Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Postal Savings Bank 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 Postal Savings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Postal Savings Bank has no effect on the direction of Identiv i.e., Identiv and Postal Savings go up and down completely randomly.
Pair Corralation between Identiv and Postal Savings
Assuming the 90 days trading horizon Identiv is expected to under-perform the Postal Savings. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.81 times less risky than Postal Savings. The stock trades about -0.02 of its potential returns per unit of risk. The Postal Savings Bank is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 5.53 in Postal Savings Bank on November 19, 2024 and sell it today you would earn a total of 50.47 from holding Postal Savings Bank or generate 912.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Postal Savings Bank
Performance |
| Timeline |
| Identiv |
| Postal Savings Bank |
Identiv and Postal Savings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Postal Savings
The main advantage of trading using opposite Identiv and Postal Savings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Postal Savings 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 Postal Savings will offset losses from the drop in Postal Savings' long position.| Identiv vs. Gol Intelligent Airlines | Identiv vs. AEON METALS LTD | Identiv vs. SIERRA METALS | Identiv vs. Transport International Holdings |
| Postal Savings vs. RESMINING UNSPADR10 | Postal Savings vs. De Grey Mining | Postal Savings vs. Zijin Mining Group | Postal Savings vs. SLIGRO FOOD GROUP |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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