Correlation Between Identiv and Macys
Can any of the company-specific risk be diversified away by investing in both Identiv and Macys 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 Macys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Macys Inc, you can compare the effects of market volatilities on Identiv and Macys 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 Macys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Macys.
Diversification Opportunities for Identiv and Macys
Poor diversification
The 3 months correlation between Identiv and Macys is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Macys Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macys Inc 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 Macys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macys Inc has no effect on the direction of Identiv i.e., Identiv and Macys go up and down completely randomly.
Pair Corralation between Identiv and Macys
Assuming the 90 days trading horizon Identiv is expected to under-perform the Macys. In addition to that, Identiv is 1.34 times more volatile than Macys Inc. It trades about -0.01 of its total potential returns per unit of risk. Macys Inc is currently generating about 0.0 per unit of volatility. If you would invest 1,928 in Macys Inc on September 3, 2024 and sell it today you would lose (418.00) from holding Macys Inc or give up 21.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Macys Inc
Performance |
| Timeline |
| Identiv |
| Macys Inc |
Identiv and Macys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Macys
The main advantage of trading using opposite Identiv and Macys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Macys 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 Macys will offset losses from the drop in Macys' long position.| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
| Macys vs. SCANSOURCE | Macys vs. HEALTHCARE REAL A | Macys vs. SHIP HEALTHCARE HLDGINC | Macys vs. EPSILON HEALTHCARE LTD |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |