Correlation Between KION Group and Identiv
Can any of the company-specific risk be diversified away by investing in both KION Group and Identiv 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 KION Group and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KION Group AG and Identiv, you can compare the effects of market volatilities on KION Group and Identiv 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 KION Group with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of KION Group and Identiv.
Diversification Opportunities for KION Group and Identiv
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KION and Identiv is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding KION Group AG and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and KION Group 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 KION Group AG are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of KION Group i.e., KION Group and Identiv go up and down completely randomly.
Pair Corralation between KION Group and Identiv
Assuming the 90 days horizon KION Group AG is expected to generate 0.59 times more return on investment than Identiv. However, KION Group AG is 1.7 times less risky than Identiv. It trades about 0.02 of its potential returns per unit of risk. Identiv is currently generating about -0.02 per unit of risk. If you would invest 3,615 in KION Group AG on November 19, 2024 and sell it today you would earn a total of 210.00 from holding KION Group AG or generate 5.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KION Group AG vs. Identiv
Performance |
| Timeline |
| KION Group AG |
| Identiv |
KION Group and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KION Group and Identiv
The main advantage of trading using opposite KION Group and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KION Group position performs unexpectedly, Identiv 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 Identiv will offset losses from the drop in Identiv's long position.| KION Group vs. ASURE SOFTWARE | KION Group vs. Air Transport Services | KION Group vs. BII Railway Transportation | KION Group vs. Marie Brizard Wine |
| Identiv vs. Gol Intelligent Airlines | Identiv vs. AEON METALS LTD | Identiv vs. SIERRA METALS | Identiv vs. Transport International Holdings |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |