Correlation Between LOANDEPOT INC and Identiv
Can any of the company-specific risk be diversified away by investing in both LOANDEPOT INC 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 LOANDEPOT INC and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOANDEPOT INC A and Identiv, you can compare the effects of market volatilities on LOANDEPOT INC 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 LOANDEPOT INC with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOANDEPOT INC and Identiv.
Diversification Opportunities for LOANDEPOT INC and Identiv
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between LOANDEPOT and Identiv is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding LOANDEPOT INC A and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and LOANDEPOT INC 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 LOANDEPOT INC A 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 LOANDEPOT INC i.e., LOANDEPOT INC and Identiv go up and down completely randomly.
Pair Corralation between LOANDEPOT INC and Identiv
Assuming the 90 days horizon LOANDEPOT INC A is expected to generate 1.72 times more return on investment than Identiv. However, LOANDEPOT INC is 1.72 times more volatile than Identiv. It trades about 0.14 of its potential returns per unit of risk. Identiv is currently generating about 0.14 per unit of risk. If you would invest 180.00 in LOANDEPOT INC A on August 30, 2024 and sell it today you would earn a total of 30.00 from holding LOANDEPOT INC A or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOANDEPOT INC A vs. Identiv
Performance |
| Timeline |
| LOANDEPOT INC A |
| Identiv |
LOANDEPOT INC and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOANDEPOT INC and Identiv
The main advantage of trading using opposite LOANDEPOT INC and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOANDEPOT INC 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.| LOANDEPOT INC vs. AUSTEVOLL SEAFOOD | LOANDEPOT INC vs. Algonquin Power Utilities | LOANDEPOT INC vs. Tyson Foods | LOANDEPOT INC vs. Charoen Pokphand Foods |
| Identiv vs. Corsair Gaming | Identiv vs. SENECA FOODS A | Identiv vs. Tyson Foods | Identiv vs. MYFAIR GOLD P |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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