Correlation Between Identiv and RTL GROUP
Can any of the company-specific risk be diversified away by investing in both Identiv and RTL 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 RTL GROUP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and RTL GROUP UNSPADR, you can compare the effects of market volatilities on Identiv and RTL 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 RTL GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and RTL GROUP.
Diversification Opportunities for Identiv and RTL GROUP
Excellent diversification
The 3 months correlation between Identiv and RTL is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and RTL GROUP UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RTL GROUP UNSPADR 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 RTL GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RTL GROUP UNSPADR has no effect on the direction of Identiv i.e., Identiv and RTL GROUP go up and down completely randomly.
Pair Corralation between Identiv and RTL GROUP
Assuming the 90 days trading horizon Identiv is expected to generate 0.92 times more return on investment than RTL GROUP. However, Identiv is 1.09 times less risky than RTL GROUP. It trades about 0.18 of its potential returns per unit of risk. RTL GROUP UNSPADR is currently generating about -0.2 per unit of risk. If you would invest 320.00 in Identiv on September 1, 2024 and sell it today you would earn a total of 40.00 from holding Identiv or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Identiv vs. RTL GROUP UNSPADR
Performance |
| Timeline |
| Identiv |
| RTL GROUP UNSPADR |
Identiv and RTL GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and RTL GROUP
The main advantage of trading using opposite Identiv and RTL GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, RTL 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 RTL GROUP will offset losses from the drop in RTL GROUP's long position.| Identiv vs. ANTA SPORTS PRODUCT | Identiv vs. PLAYTIKA HOLDING DL 01 | Identiv vs. CNVISION MEDIA | Identiv vs. PARKEN Sport Entertainment |
| RTL GROUP vs. WIZZ AIR HLDGUNSPADR4 | RTL GROUP vs. Taiwan Semiconductor Manufacturing | RTL GROUP vs. GEAR4MUSIC LS 10 | RTL GROUP vs. Ryanair Holdings plc |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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