Correlation Between Identiv and HYGEIA HC
Can any of the company-specific risk be diversified away by investing in both Identiv and HYGEIA HC 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 HYGEIA HC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and HYGEIA HC HLDGS, you can compare the effects of market volatilities on Identiv and HYGEIA HC 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 HYGEIA HC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and HYGEIA HC.
Diversification Opportunities for Identiv and HYGEIA HC
Significant diversification
The 3 months correlation between Identiv and HYGEIA is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and HYGEIA HC HLDGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HYGEIA HC HLDGS 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 HYGEIA HC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HYGEIA HC HLDGS has no effect on the direction of Identiv i.e., Identiv and HYGEIA HC go up and down completely randomly.
Pair Corralation between Identiv and HYGEIA HC
Assuming the 90 days trading horizon Identiv is expected to generate 0.48 times more return on investment than HYGEIA HC. However, Identiv is 2.1 times less risky than HYGEIA HC. It trades about 0.15 of its potential returns per unit of risk. HYGEIA HC HLDGS is currently generating about -0.12 per unit of risk. If you would invest 311.00 in Identiv on August 30, 2024 and sell it today you would earn a total of 52.00 from holding Identiv or generate 16.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
Identiv vs. HYGEIA HC HLDGS
Performance |
| Timeline |
| Identiv |
| HYGEIA HC HLDGS |
Identiv and HYGEIA HC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and HYGEIA HC
The main advantage of trading using opposite Identiv and HYGEIA HC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, HYGEIA HC 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 HYGEIA HC will offset losses from the drop in HYGEIA HC's long position.| Identiv vs. Corsair Gaming | Identiv vs. SENECA FOODS A | Identiv vs. Tyson Foods | Identiv vs. MYFAIR GOLD P |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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