Correlation Between Identiv and CRRCLimited
Can any of the company-specific risk be diversified away by investing in both Identiv and CRRCLimited 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 CRRCLimited into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and CRRC Limited, you can compare the effects of market volatilities on Identiv and CRRCLimited 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 CRRCLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and CRRCLimited.
Diversification Opportunities for Identiv and CRRCLimited
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Identiv and CRRCLimited is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and CRRC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CRRC Limited 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 CRRCLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CRRC Limited has no effect on the direction of Identiv i.e., Identiv and CRRCLimited go up and down completely randomly.
Pair Corralation between Identiv and CRRCLimited
Assuming the 90 days trading horizon Identiv is expected to under-perform the CRRCLimited. In addition to that, Identiv is 1.05 times more volatile than CRRC Limited. It trades about -0.03 of its total potential returns per unit of risk. CRRC Limited is currently generating about 0.07 per unit of volatility. If you would invest 31.00 in CRRC Limited on August 28, 2024 and sell it today you would earn a total of 30.00 from holding CRRC Limited or generate 96.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. CRRC Limited
Performance |
| Timeline |
| Identiv |
| CRRC Limited |
Identiv and CRRCLimited Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and CRRCLimited
The main advantage of trading using opposite Identiv and CRRCLimited positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, CRRCLimited 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 CRRCLimited will offset losses from the drop in CRRCLimited's long position.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| CRRCLimited vs. Richardson Electronics | CRRCLimited vs. LG Electronics | CRRCLimited vs. Townsquare Media | CRRCLimited vs. Meiko Electronics Co |
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 Channel module to use Commodity Channel Index to analyze current equity momentum.
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