Correlation Between LOral SA and Identiv
Can any of the company-specific risk be diversified away by investing in both LOral SA 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 LOral SA and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LOral SA and Identiv, you can compare the effects of market volatilities on LOral SA 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 LOral SA with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of LOral SA and Identiv.
Diversification Opportunities for LOral SA and Identiv
Pay attention - limited upside
The 3 months correlation between LOral and Identiv is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding LOral SA and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and LOral SA 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 LOral SA 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 LOral SA i.e., LOral SA and Identiv go up and down completely randomly.
Pair Corralation between LOral SA and Identiv
Assuming the 90 days horizon LOral SA is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, LOral SA is 2.11 times less risky than Identiv. The stock trades about -0.15 of its potential returns per unit of risk. The Identiv is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Identiv on September 2, 2024 and sell it today you would earn a total of 41.00 from holding Identiv or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LOral SA vs. Identiv
Performance |
| Timeline |
| LOral SA |
| Identiv |
LOral SA and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LOral SA and Identiv
The main advantage of trading using opposite LOral SA and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LOral SA 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.| LOral SA vs. Gladstone Investment | LOral SA vs. REGAL ASIAN INVESTMENTS | LOral SA vs. NorAm Drilling AS | LOral SA vs. PRECISION DRILLING P |
| Identiv vs. SBA Communications Corp | Identiv vs. Verizon Communications | Identiv vs. Iridium Communications | Identiv vs. THORNEY TECHS LTD |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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