Correlation Between Identiv and Byggmax Group
Can any of the company-specific risk be diversified away by investing in both Identiv and Byggmax Group 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 Byggmax Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Byggmax Group AB, you can compare the effects of market volatilities on Identiv and Byggmax Group 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 Byggmax Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Byggmax Group.
Diversification Opportunities for Identiv and Byggmax Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Identiv and Byggmax is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Byggmax Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Byggmax Group AB 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 Byggmax Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Byggmax Group AB has no effect on the direction of Identiv i.e., Identiv and Byggmax Group go up and down completely randomly.
Pair Corralation between Identiv and Byggmax Group
Assuming the 90 days trading horizon Identiv is expected to generate 1.22 times more return on investment than Byggmax Group. However, Identiv is 1.22 times more volatile than Byggmax Group AB. It trades about 0.16 of its potential returns per unit of risk. Byggmax Group AB is currently generating about -0.12 per unit of risk. If you would invest 325.00 in Identiv on September 3, 2024 and sell it today you would earn a total of 35.00 from holding Identiv or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Byggmax Group AB
Performance |
| Timeline |
| Identiv |
| Byggmax Group AB |
Identiv and Byggmax Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Byggmax Group
The main advantage of trading using opposite Identiv and Byggmax Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Byggmax Group 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 Byggmax Group will offset losses from the drop in Byggmax Group's long position.| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
| Byggmax Group vs. Lowes Companies | Byggmax Group vs. Haverty Furniture Companies | Byggmax Group vs. Superior Plus Corp | Byggmax Group vs. NMI Holdings |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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