Correlation Between Identiv and Xtrackers LevDAX
Can any of the company-specific risk be diversified away by investing in both Identiv and Xtrackers LevDAX 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 Xtrackers LevDAX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Xtrackers LevDAX, you can compare the effects of market volatilities on Identiv and Xtrackers LevDAX 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 Xtrackers LevDAX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Xtrackers LevDAX.
Diversification Opportunities for Identiv and Xtrackers LevDAX
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Identiv and Xtrackers is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Xtrackers LevDAX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xtrackers LevDAX 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 Xtrackers LevDAX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xtrackers LevDAX has no effect on the direction of Identiv i.e., Identiv and Xtrackers LevDAX go up and down completely randomly.
Pair Corralation between Identiv and Xtrackers LevDAX
Assuming the 90 days trading horizon Identiv is expected to generate 1.79 times more return on investment than Xtrackers LevDAX. However, Identiv is 1.79 times more volatile than Xtrackers LevDAX. It trades about 0.23 of its potential returns per unit of risk. Xtrackers LevDAX is currently generating about -0.15 per unit of risk. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Identiv vs. Xtrackers LevDAX
Performance |
| Timeline |
| Identiv |
| Xtrackers LevDAX |
Identiv and Xtrackers LevDAX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Xtrackers LevDAX
The main advantage of trading using opposite Identiv and Xtrackers LevDAX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Xtrackers LevDAX 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 Xtrackers LevDAX will offset losses from the drop in Xtrackers LevDAX's long position.| Identiv vs. VIRG NATL BANKSH | Identiv vs. CDN IMPERIAL BANK | Identiv vs. UNITED UTILITIES GR | Identiv vs. Ameriprise Financial |
| Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
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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