Correlation Between Key Tronic and Identiv
Can any of the company-specific risk be diversified away by investing in both Key Tronic 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 Key Tronic and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Key Tronic and Identiv, you can compare the effects of market volatilities on Key Tronic 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 Key Tronic with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Key Tronic and Identiv.
Diversification Opportunities for Key Tronic and Identiv
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Key and Identiv is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Key Tronic and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Key Tronic 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 Key Tronic 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 Key Tronic i.e., Key Tronic and Identiv go up and down completely randomly.
Pair Corralation between Key Tronic and Identiv
Given the investment horizon of 90 days Key Tronic is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, Key Tronic is 1.72 times less risky than Identiv. The stock trades about -0.16 of its potential returns per unit of risk. The Identiv is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 348.00 in Identiv on August 27, 2024 and sell it today you would earn a total of 48.00 from holding Identiv or generate 13.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Key Tronic vs. Identiv
Performance |
| Timeline |
| Key Tronic |
| Identiv |
Key Tronic and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Key Tronic and Identiv
The main advantage of trading using opposite Key Tronic and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Key Tronic 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.| Key Tronic vs. AGM Group Holdings | Key Tronic vs. TransAct Technologies Incorporated | Key Tronic vs. AstroNova | Key Tronic vs. Quantum |
| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |