Correlation Between Identiv and KION Group
Can any of the company-specific risk be diversified away by investing in both Identiv and KION Group 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 KION Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and KION Group AG, you can compare the effects of market volatilities on Identiv and KION Group 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 KION Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and KION Group.
Diversification Opportunities for Identiv and KION Group
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Identiv and KION is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and KION Group AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KION Group AG 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 KION Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KION Group AG has no effect on the direction of Identiv i.e., Identiv and KION Group go up and down completely randomly.
Pair Corralation between Identiv and KION Group
Assuming the 90 days trading horizon Identiv is expected to generate 1.14 times more return on investment than KION Group. However, Identiv is 1.14 times more volatile than KION Group AG. It trades about 0.05 of its potential returns per unit of risk. KION Group AG is currently generating about -0.09 per unit of risk. If you would invest 337.00 in Identiv on August 25, 2024 and sell it today you would earn a total of 9.00 from holding Identiv or generate 2.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. KION Group AG
Performance |
| Timeline |
| Identiv |
| KION Group AG |
Identiv and KION Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and KION Group
The main advantage of trading using opposite Identiv and KION Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, KION Group 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 KION Group will offset losses from the drop in KION Group's long position.| Identiv vs. MIRAMAR HOTEL INV | Identiv vs. DALATA HOTEL | Identiv vs. Hyatt Hotels | Identiv vs. MHP Hotel AG |
| KION Group vs. Cogent Communications Holdings | KION Group vs. Diamyd Medical AB | KION Group vs. Japan Medical Dynamic | KION Group vs. Ribbon Communications |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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