Correlation Between Identiv and Fuji Media
Can any of the company-specific risk be diversified away by investing in both Identiv and Fuji Media 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 Fuji Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Fuji Media Holdings, you can compare the effects of market volatilities on Identiv and Fuji Media 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 Fuji Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Fuji Media.
Diversification Opportunities for Identiv and Fuji Media
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Identiv and Fuji is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Fuji Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuji Media Holdings 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 Fuji Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuji Media Holdings has no effect on the direction of Identiv i.e., Identiv and Fuji Media go up and down completely randomly.
Pair Corralation between Identiv and Fuji Media
Assuming the 90 days trading horizon Identiv is expected to generate 1.83 times more return on investment than Fuji Media. However, Identiv is 1.83 times more volatile than Fuji Media Holdings. It trades about 0.18 of its potential returns per unit of risk. Fuji Media Holdings is currently generating about 0.13 per unit of risk. If you would invest 319.00 in Identiv on September 2, 2024 and sell it today you would earn a total of 41.00 from holding Identiv or generate 12.85% 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. Fuji Media Holdings
Performance |
| Timeline |
| Identiv |
| Fuji Media Holdings |
Identiv and Fuji Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Fuji Media
The main advantage of trading using opposite Identiv and Fuji Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Fuji Media 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 Fuji Media will offset losses from the drop in Fuji Media's long position.| Identiv vs. SBA Communications Corp | Identiv vs. Verizon Communications | Identiv vs. Iridium Communications | Identiv vs. THORNEY TECHS LTD |
| Fuji Media vs. Rai Way SpA | Fuji Media vs. Superior Plus Corp | Fuji Media vs. NMI Holdings | Fuji Media vs. Origin Agritech |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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