Correlation Between Identiv and Indutrade
Can any of the company-specific risk be diversified away by investing in both Identiv and Indutrade 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 Indutrade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Indutrade AB, you can compare the effects of market volatilities on Identiv and Indutrade 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 Indutrade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Indutrade.
Diversification Opportunities for Identiv and Indutrade
Pay attention - limited upside
The 3 months correlation between Identiv and Indutrade is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Indutrade AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Indutrade AB 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 Indutrade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Indutrade AB has no effect on the direction of Identiv i.e., Identiv and Indutrade go up and down completely randomly.
Pair Corralation between Identiv and Indutrade
Assuming the 90 days trading horizon Identiv is expected to under-perform the Indutrade. In addition to that, Identiv is 2.03 times more volatile than Indutrade AB. It trades about -0.01 of its total potential returns per unit of risk. Indutrade AB is currently generating about 0.05 per unit of volatility. If you would invest 1,543 in Indutrade AB on September 3, 2024 and sell it today you would earn a total of 843.00 from holding Indutrade AB or generate 54.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Indutrade AB
Performance |
| Timeline |
| Identiv |
| Indutrade AB |
Identiv and Indutrade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Indutrade
The main advantage of trading using opposite Identiv and Indutrade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Indutrade 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 Indutrade will offset losses from the drop in Indutrade's long position.| Identiv vs. Hitachi Construction Machinery | Identiv vs. Sumitomo Mitsui Construction | Identiv vs. Marie Brizard Wine | Identiv vs. HYDROFARM HLD GRP |
| Indutrade vs. MITSUBISHI STEEL MFG | Indutrade vs. COSMOSTEEL HLDGS | Indutrade vs. HYDROFARM HLD GRP | Indutrade vs. H FARM SPA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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