Correlation Between Identiv and Intel
Can any of the company-specific risk be diversified away by investing in both Identiv and Intel 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 Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Intel, you can compare the effects of market volatilities on Identiv and Intel 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 Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Intel.
Diversification Opportunities for Identiv and Intel
Poor diversification
The 3 months correlation between Identiv and Intel is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel 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 Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Identiv i.e., Identiv and Intel go up and down completely randomly.
Pair Corralation between Identiv and Intel
Assuming the 90 days trading horizon Identiv is expected to generate 1.74 times less return on investment than Intel. But when comparing it to its historical volatility, Identiv is 1.22 times less risky than Intel. It trades about 0.1 of its potential returns per unit of risk. Intel is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,056 in Intel on August 24, 2024 and sell it today you would earn a total of 215.00 from holding Intel or generate 10.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Intel
Performance |
| Timeline |
| Identiv |
| Intel |
Identiv and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Intel
The main advantage of trading using opposite Identiv and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Identiv vs. QBE Insurance Group | Identiv vs. Park Hotels Resorts | Identiv vs. COVIVIO HOTELS INH | Identiv vs. VIRG NATL BANKSH |
| Intel vs. CECO ENVIRONMENTAL | Intel vs. EMBARK EDUCATION LTD | Intel vs. CosmoSteel Holdings Limited | Intel vs. CAREER EDUCATION |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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