Correlation Between Identiv and PT Ace
Can any of the company-specific risk be diversified away by investing in both Identiv and PT Ace 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 PT Ace into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and PT Ace Hardware, you can compare the effects of market volatilities on Identiv and PT Ace 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 PT Ace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and PT Ace.
Diversification Opportunities for Identiv and PT Ace
Very good diversification
The 3 months correlation between Identiv and 4AH1 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and PT Ace Hardware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Ace Hardware 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 PT Ace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Ace Hardware has no effect on the direction of Identiv i.e., Identiv and PT Ace go up and down completely randomly.
Pair Corralation between Identiv and PT Ace
Assuming the 90 days trading horizon Identiv is expected to under-perform the PT Ace. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 4.29 times less risky than PT Ace. The stock trades about -0.08 of its potential returns per unit of risk. The PT Ace Hardware is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3.75 in PT Ace Hardware on November 6, 2024 and sell it today you would earn a total of 0.00 from holding PT Ace Hardware or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. PT Ace Hardware
Performance |
| Timeline |
| Identiv |
| PT Ace Hardware |
Identiv and PT Ace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and PT Ace
The main advantage of trading using opposite Identiv and PT Ace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, PT Ace 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 PT Ace will offset losses from the drop in PT Ace's long position.| Identiv vs. GRENKELEASING Dusseldorf | Identiv vs. Information Services International Dentsu | Identiv vs. INFORMATION SVC GRP | Identiv vs. FIRST SHIP LEASE |
| PT Ace vs. MAGNUM MINING EXP | PT Ace vs. ANGLO ASIAN MINING | PT Ace vs. Globex Mining Enterprises | PT Ace vs. Jacquet Metal Service |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |