Correlation Between Identiv and BANK HANDLOWY
Can any of the company-specific risk be diversified away by investing in both Identiv and BANK HANDLOWY 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 BANK HANDLOWY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and BANK HANDLOWY, you can compare the effects of market volatilities on Identiv and BANK HANDLOWY 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 BANK HANDLOWY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and BANK HANDLOWY.
Diversification Opportunities for Identiv and BANK HANDLOWY
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Identiv and BANK is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and BANK HANDLOWY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK HANDLOWY 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 BANK HANDLOWY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK HANDLOWY has no effect on the direction of Identiv i.e., Identiv and BANK HANDLOWY go up and down completely randomly.
Pair Corralation between Identiv and BANK HANDLOWY
Assuming the 90 days trading horizon Identiv is expected to under-perform the BANK HANDLOWY. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.17 times less risky than BANK HANDLOWY. The stock trades about -0.02 of its potential returns per unit of risk. The BANK HANDLOWY is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 465.00 in BANK HANDLOWY on August 24, 2024 and sell it today you would earn a total of 1,565 from holding BANK HANDLOWY or generate 336.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Identiv vs. BANK HANDLOWY
Performance |
| Timeline |
| Identiv |
| BANK HANDLOWY |
Identiv and BANK HANDLOWY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and BANK HANDLOWY
The main advantage of trading using opposite Identiv and BANK HANDLOWY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, BANK HANDLOWY 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 BANK HANDLOWY will offset losses from the drop in BANK HANDLOWY's long position.| Identiv vs. MIRAMAR HOTEL INV | Identiv vs. DALATA HOTEL | Identiv vs. Hyatt Hotels | Identiv vs. MHP Hotel AG |
| BANK HANDLOWY vs. Astral Foods Limited | BANK HANDLOWY vs. Magnachip Semiconductor | BANK HANDLOWY vs. ELMOS SEMICONDUCTOR | BANK HANDLOWY vs. BE Semiconductor Industries |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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