Correlation Between Identiv and CN YANGTPWR
Can any of the company-specific risk be diversified away by investing in both Identiv and CN YANGTPWR 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 CN YANGTPWR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and CN YANGTPWR GDR, you can compare the effects of market volatilities on Identiv and CN YANGTPWR 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 CN YANGTPWR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and CN YANGTPWR.
Diversification Opportunities for Identiv and CN YANGTPWR
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Identiv and CYZB is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and CN YANGTPWR GDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN YANGTPWR GDR 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 CN YANGTPWR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN YANGTPWR GDR has no effect on the direction of Identiv i.e., Identiv and CN YANGTPWR go up and down completely randomly.
Pair Corralation between Identiv and CN YANGTPWR
Assuming the 90 days trading horizon Identiv is expected to under-perform the CN YANGTPWR. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.19 times less risky than CN YANGTPWR. The stock trades about -0.1 of its potential returns per unit of risk. The CN YANGTPWR GDR is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 3,500 in CN YANGTPWR GDR on November 27, 2024 and sell it today you would earn a total of 700.00 from holding CN YANGTPWR GDR or generate 20.0% 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. CN YANGTPWR GDR
Performance |
| Timeline |
| Identiv |
| CN YANGTPWR GDR |
Identiv and CN YANGTPWR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and CN YANGTPWR
The main advantage of trading using opposite Identiv and CN YANGTPWR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, CN YANGTPWR 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 CN YANGTPWR will offset losses from the drop in CN YANGTPWR's long position.| Identiv vs. Discover Financial Services | Identiv vs. Sligro Food Group | Identiv vs. REVO INSURANCE SPA | Identiv vs. EBRO FOODS |
| CN YANGTPWR vs. ON Semiconductor | CN YANGTPWR vs. Tower Semiconductor | CN YANGTPWR vs. MagnaChip Semiconductor Corp | CN YANGTPWR vs. MCEWEN MINING INC |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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