Correlation Between Identiv and Shanghai Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Identiv and Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Shanghai Pharmaceuticals Holding, you can compare the effects of market volatilities on Identiv and Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Shanghai Pharmaceuticals.
Diversification Opportunities for Identiv and Shanghai Pharmaceuticals
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Identiv and Shanghai is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Shanghai Pharmaceuticals Holdi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pharmaceuticals has no effect on the direction of Identiv i.e., Identiv and Shanghai Pharmaceuticals go up and down completely randomly.
Pair Corralation between Identiv and Shanghai Pharmaceuticals
Assuming the 90 days trading horizon Identiv is expected to generate 1.43 times more return on investment than Shanghai Pharmaceuticals. However, Identiv is 1.43 times more volatile than Shanghai Pharmaceuticals Holding. It trades about 0.23 of its potential returns per unit of risk. Shanghai Pharmaceuticals Holding is currently generating about 0.11 per unit of risk. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Identiv vs. Shanghai Pharmaceuticals Holdi
Performance |
| Timeline |
| Identiv |
| Shanghai Pharmaceuticals |
Identiv and Shanghai Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Shanghai Pharmaceuticals
The main advantage of trading using opposite Identiv and Shanghai Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Shanghai Pharmaceuticals 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 Shanghai Pharmaceuticals will offset losses from the drop in Shanghai Pharmaceuticals' long position.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| Shanghai Pharmaceuticals vs. Westinghouse Air Brake | Shanghai Pharmaceuticals vs. GEELY AUTOMOBILE | Shanghai Pharmaceuticals vs. Fair Isaac Corp | Shanghai Pharmaceuticals vs. Commercial Vehicle Group |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |