Correlation Between Identiv and Snam SpA
Can any of the company-specific risk be diversified away by investing in both Identiv and Snam SpA 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 Snam SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Snam SpA, you can compare the effects of market volatilities on Identiv and Snam SpA 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 Snam SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Snam SpA.
Diversification Opportunities for Identiv and Snam SpA
Excellent diversification
The 3 months correlation between Identiv and Snam is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Snam SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Snam SpA 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 Snam SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Snam SpA has no effect on the direction of Identiv i.e., Identiv and Snam SpA go up and down completely randomly.
Pair Corralation between Identiv and Snam SpA
Assuming the 90 days trading horizon Identiv is expected to generate 3.09 times more return on investment than Snam SpA. However, Identiv is 3.09 times more volatile than Snam SpA. It trades about 0.23 of its potential returns per unit of risk. Snam SpA is currently generating about -0.14 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 Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Identiv vs. Snam SpA
Performance |
| Timeline |
| Identiv |
| Snam SpA |
Identiv and Snam SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Snam SpA
The main advantage of trading using opposite Identiv and Snam SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Snam SpA 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 Snam SpA will offset losses from the drop in Snam SpA's long position.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| Snam SpA vs. Superior Plus Corp | Snam SpA vs. NMI Holdings | Snam SpA vs. Origin Agritech | Snam SpA vs. SIVERS SEMICONDUCTORS AB |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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