Correlation Between Identiv and Sinopec Shanghai
Can any of the company-specific risk be diversified away by investing in both Identiv and Sinopec Shanghai 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 Sinopec Shanghai into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Sinopec Shanghai Petrochemical, you can compare the effects of market volatilities on Identiv and Sinopec Shanghai 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 Sinopec Shanghai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Sinopec Shanghai.
Diversification Opportunities for Identiv and Sinopec Shanghai
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Identiv and Sinopec is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Sinopec Shanghai Petrochemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinopec Shanghai Pet 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 Sinopec Shanghai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinopec Shanghai Pet has no effect on the direction of Identiv i.e., Identiv and Sinopec Shanghai go up and down completely randomly.
Pair Corralation between Identiv and Sinopec Shanghai
Assuming the 90 days trading horizon Identiv is expected to generate 0.77 times more return on investment than Sinopec Shanghai. However, Identiv is 1.3 times less risky than Sinopec Shanghai. It trades about 0.05 of its potential returns per unit of risk. Sinopec Shanghai Petrochemical is currently generating about 0.02 per unit of risk. If you would invest 350.00 in Identiv on October 24, 2024 and sell it today you would earn a total of 6.00 from holding Identiv or generate 1.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. Sinopec Shanghai Petrochemical
Performance |
| Timeline |
| Identiv |
| Sinopec Shanghai Pet |
Identiv and Sinopec Shanghai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Sinopec Shanghai
The main advantage of trading using opposite Identiv and Sinopec Shanghai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Sinopec Shanghai 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 Sinopec Shanghai will offset losses from the drop in Sinopec Shanghai's long position.| Identiv vs. Osisko Metals | Identiv vs. Forsys Metals Corp | Identiv vs. THORNEY TECHS LTD | Identiv vs. Air Transport Services |
| Sinopec Shanghai vs. Gaming and Leisure | Sinopec Shanghai vs. ePlay Digital | Sinopec Shanghai vs. COLUMBIA SPORTSWEAR | Sinopec Shanghai vs. Columbia Sportswear |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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