Correlation Between Identiv and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Identiv and Equitable Holdings 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 Equitable Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Equitable Holdings, you can compare the effects of market volatilities on Identiv and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Equitable Holdings.
Diversification Opportunities for Identiv and Equitable Holdings
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Identiv and Equitable is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Identiv i.e., Identiv and Equitable Holdings go up and down completely randomly.
Pair Corralation between Identiv and Equitable Holdings
Assuming the 90 days trading horizon Identiv is expected to generate 1.22 times less return on investment than Equitable Holdings. In addition to that, Identiv is 1.41 times more volatile than Equitable Holdings. It trades about 0.11 of its total potential returns per unit of risk. Equitable Holdings is currently generating about 0.18 per unit of volatility. If you would invest 3,680 in Equitable Holdings on August 29, 2024 and sell it today you would earn a total of 920.00 from holding Equitable Holdings or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Equitable Holdings
Performance |
| Timeline |
| Identiv |
| Equitable Holdings |
Identiv and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Equitable Holdings
The main advantage of trading using opposite Identiv and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Identiv vs. NIPPON STEEL SPADR | Identiv vs. GFL ENVIRONM | Identiv vs. RELIANCE STEEL AL | Identiv vs. United States Steel |
| Equitable Holdings vs. PT Indofood Sukses | Equitable Holdings vs. SENECA FOODS A | Equitable Holdings vs. ZANAGA IRON ORE | Equitable Holdings vs. Austevoll Seafood ASA |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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