Correlation Between Identiv and China Resources
Can any of the company-specific risk be diversified away by investing in both Identiv and China Resources 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 China Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and China Resources Land, you can compare the effects of market volatilities on Identiv and China Resources 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 China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and China Resources.
Diversification Opportunities for Identiv and China Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Identiv and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and China Resources Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Land 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 China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Land has no effect on the direction of Identiv i.e., Identiv and China Resources go up and down completely randomly.
Pair Corralation between Identiv and China Resources
Assuming the 90 days trading horizon Identiv is expected to generate 1.91 times more return on investment than China Resources. However, Identiv is 1.91 times more volatile than China Resources Land. It trades about 0.04 of its potential returns per unit of risk. China Resources Land is currently generating about 0.07 per unit of risk. If you would invest 348.00 in Identiv on October 29, 2024 and sell it today you would earn a total of 6.00 from holding Identiv or generate 1.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. China Resources Land
Performance |
| Timeline |
| Identiv |
| China Resources Land |
Identiv and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and China Resources
The main advantage of trading using opposite Identiv and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, China Resources 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 China Resources will offset losses from the drop in China Resources' long position.| Identiv vs. China Reinsurance | Identiv vs. Carsales | Identiv vs. MARKET VECTR RETAIL | Identiv vs. SIDETRADE EO 1 |
| China Resources vs. PEPTONIC MEDICAL | China Resources vs. Diamyd Medical AB | China Resources vs. Apollo Investment Corp | China Resources vs. CompuGroup Medical SE |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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