Correlation Between Identiv and Man Wah
Can any of the company-specific risk be diversified away by investing in both Identiv and Man Wah 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 Man Wah into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Man Wah Holdings, you can compare the effects of market volatilities on Identiv and Man Wah 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 Man Wah. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Man Wah.
Diversification Opportunities for Identiv and Man Wah
Significant diversification
The 3 months correlation between Identiv and Man is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Man Wah Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Man Wah Holdings 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 Man Wah. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Man Wah Holdings has no effect on the direction of Identiv i.e., Identiv and Man Wah go up and down completely randomly.
Pair Corralation between Identiv and Man Wah
Assuming the 90 days trading horizon Identiv is expected to under-perform the Man Wah. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.15 times less risky than Man Wah. The stock trades about -0.48 of its potential returns per unit of risk. The Man Wah Holdings is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Man Wah Holdings on October 15, 2024 and sell it today you would lose (1.00) from holding Man Wah Holdings or give up 1.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Man Wah Holdings
Performance |
| Timeline |
| Identiv |
| Man Wah Holdings |
Identiv and Man Wah Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Man Wah
The main advantage of trading using opposite Identiv and Man Wah positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Man Wah 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 Man Wah will offset losses from the drop in Man Wah's long position.| Identiv vs. Easy Software AG | Identiv vs. Pure Storage | Identiv vs. Teradata Corp | Identiv vs. CN DATANG C |
| Man Wah vs. SK TELECOM TDADR | Man Wah vs. Zoom Video Communications | Man Wah vs. INTERSHOP Communications Aktiengesellschaft | Man Wah vs. COMBA TELECOM SYST |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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