Correlation Between Kraft Heinz and Identiv
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz 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 Kraft Heinz and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Identiv, you can compare the effects of market volatilities on Kraft Heinz 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 Kraft Heinz with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Identiv.
Diversification Opportunities for Kraft Heinz and Identiv
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and Identiv is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Kraft Heinz 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 Kraft Heinz Co 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 Kraft Heinz i.e., Kraft Heinz and Identiv go up and down completely randomly.
Pair Corralation between Kraft Heinz and Identiv
Assuming the 90 days trading horizon Kraft Heinz Co is expected to generate 0.32 times more return on investment than Identiv. However, Kraft Heinz Co is 3.09 times less risky than Identiv. It trades about 0.02 of its potential returns per unit of risk. Identiv is currently generating about -0.03 per unit of risk. If you would invest 2,892 in Kraft Heinz Co on August 29, 2024 and sell it today you would earn a total of 132.00 from holding Kraft Heinz Co or generate 4.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Identiv
Performance |
| Timeline |
| Kraft Heinz |
| Identiv |
Kraft Heinz and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Identiv
The main advantage of trading using opposite Kraft Heinz and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz 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.| Kraft Heinz vs. Superior Plus Corp | Kraft Heinz vs. SIVERS SEMICONDUCTORS AB | Kraft Heinz vs. Talanx AG | Kraft Heinz vs. 2G ENERGY |
| Identiv vs. NIPPON STEEL SPADR | Identiv vs. GFL ENVIRONM | Identiv vs. RELIANCE STEEL AL | Identiv vs. United States Steel |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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