Correlation Between Identiv and Sino Land
Can any of the company-specific risk be diversified away by investing in both Identiv and Sino Land 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 Sino Land into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and Sino Land, you can compare the effects of market volatilities on Identiv and Sino Land 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 Sino Land. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Sino Land.
Diversification Opportunities for Identiv and Sino Land
Poor diversification
The 3 months correlation between Identiv and Sino is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Sino Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sino Land 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 Sino Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sino Land has no effect on the direction of Identiv i.e., Identiv and Sino Land go up and down completely randomly.
Pair Corralation between Identiv and Sino Land
Assuming the 90 days trading horizon Identiv is expected to generate 2.1 times more return on investment than Sino Land. However, Identiv is 2.1 times more volatile than Sino Land. It trades about 0.23 of its potential returns per unit of risk. Sino Land is currently generating about 0.04 per unit of risk. If you would invest 322.00 in Identiv on August 29, 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 | 100.0% |
| Values | Daily Returns |
Identiv vs. Sino Land
Performance |
| Timeline |
| Identiv |
| Sino Land |
Identiv and Sino Land Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and Sino Land
The main advantage of trading using opposite Identiv and Sino Land positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Sino Land 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 Sino Land will offset losses from the drop in Sino Land's long position.| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
| Sino Land vs. Lendlease Group | Sino Land vs. KENEDIX OFFICE INV | Sino Land vs. 24SEVENOFFICE GROUP AB | Sino Land vs. VARIOUS EATERIES LS |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |