Correlation Between Identiv and CAIXABANK UNADR
Can any of the company-specific risk be diversified away by investing in both Identiv and CAIXABANK UNADR 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 CAIXABANK UNADR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and CAIXABANK UNADR 13, you can compare the effects of market volatilities on Identiv and CAIXABANK UNADR 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 CAIXABANK UNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and CAIXABANK UNADR.
Diversification Opportunities for Identiv and CAIXABANK UNADR
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Identiv and CAIXABANK is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and CAIXABANK UNADR 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIXABANK UNADR 13 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 CAIXABANK UNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIXABANK UNADR 13 has no effect on the direction of Identiv i.e., Identiv and CAIXABANK UNADR go up and down completely randomly.
Pair Corralation between Identiv and CAIXABANK UNADR
Assuming the 90 days trading horizon Identiv is expected to generate 1.63 times more return on investment than CAIXABANK UNADR. However, Identiv is 1.63 times more volatile than CAIXABANK UNADR 13. It trades about 0.16 of its potential returns per unit of risk. CAIXABANK UNADR 13 is currently generating about -0.24 per unit of risk. If you would invest 325.00 in Identiv on September 4, 2024 and sell it today you would earn a total of 35.00 from holding Identiv or generate 10.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. CAIXABANK UNADR 13
Performance |
| Timeline |
| Identiv |
| CAIXABANK UNADR 13 |
Identiv and CAIXABANK UNADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and CAIXABANK UNADR
The main advantage of trading using opposite Identiv and CAIXABANK UNADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, CAIXABANK UNADR 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 CAIXABANK UNADR will offset losses from the drop in CAIXABANK UNADR's long position.| Identiv vs. SEALED AIR | Identiv vs. WIZZ AIR HLDGUNSPADR4 | Identiv vs. Alaska Air Group | Identiv vs. FORWARD AIR P |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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