Correlation Between Loblaw Companies and Identiv
Can any of the company-specific risk be diversified away by investing in both Loblaw Companies 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 Loblaw Companies and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Loblaw Companies Limited and Identiv, you can compare the effects of market volatilities on Loblaw Companies 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 Loblaw Companies with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Loblaw Companies and Identiv.
Diversification Opportunities for Loblaw Companies and Identiv
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Loblaw and Identiv is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Loblaw Companies Limited and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Loblaw Companies 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 Loblaw Companies Limited 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 Loblaw Companies i.e., Loblaw Companies and Identiv go up and down completely randomly.
Pair Corralation between Loblaw Companies and Identiv
Assuming the 90 days horizon Loblaw Companies is expected to generate 4.43 times less return on investment than Identiv. But when comparing it to its historical volatility, Loblaw Companies Limited is 1.64 times less risky than Identiv. It trades about 0.09 of its potential returns per unit of risk. Identiv is currently generating about 0.24 of returns per unit of risk over similar time horizon. 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 | 95.65% |
| Values | Daily Returns |
Loblaw Companies Limited vs. Identiv
Performance |
| Timeline |
| Loblaw Companies |
| Identiv |
Loblaw Companies and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Loblaw Companies and Identiv
The main advantage of trading using opposite Loblaw Companies and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Loblaw Companies 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.| Loblaw Companies vs. MAVEN WIRELESS SWEDEN | Loblaw Companies vs. COPLAND ROAD CAPITAL | Loblaw Companies vs. VARIOUS EATERIES LS | Loblaw Companies vs. SWISS WATER DECAFFCOFFEE |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |