Correlation Between Identiv and SISF BRIC
Can any of the company-specific risk be diversified away by investing in both Identiv and SISF BRIC 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 SISF BRIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identiv and SISF BRIC AC, you can compare the effects of market volatilities on Identiv and SISF BRIC 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 SISF BRIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and SISF BRIC.
Diversification Opportunities for Identiv and SISF BRIC
Very weak diversification
The 3 months correlation between Identiv and SISF is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and SISF BRIC AC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SISF BRIC AC 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 SISF BRIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SISF BRIC AC has no effect on the direction of Identiv i.e., Identiv and SISF BRIC go up and down completely randomly.
Pair Corralation between Identiv and SISF BRIC
Assuming the 90 days trading horizon Identiv is expected to generate 3.43 times more return on investment than SISF BRIC. However, Identiv is 3.43 times more volatile than SISF BRIC AC. It trades about 0.22 of its potential returns per unit of risk. SISF BRIC AC is currently generating about -0.06 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 52.00 from holding Identiv or generate 16.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identiv vs. SISF BRIC AC
Performance |
| Timeline |
| Identiv |
| SISF BRIC AC |
Identiv and SISF BRIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identiv and SISF BRIC
The main advantage of trading using opposite Identiv and SISF BRIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, SISF BRIC 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 SISF BRIC will offset losses from the drop in SISF BRIC's long position.| Identiv vs. NIPPON STEEL SPADR | Identiv vs. GFL ENVIRONM | Identiv vs. RELIANCE STEEL AL | Identiv vs. United States Steel |
| SISF BRIC vs. Renaissance Europe C | SISF BRIC vs. Superior Plus Corp | SISF BRIC vs. Origin Agritech | SISF BRIC vs. Identiv |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |