Correlation Between MUENCHRUECKUNSADR and Identiv
Can any of the company-specific risk be diversified away by investing in both MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MUENCHRUECKUNSADR 110 and Identiv, you can compare the effects of market volatilities on MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of MUENCHRUECKUNSADR and Identiv.
Diversification Opportunities for MUENCHRUECKUNSADR and Identiv
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MUENCHRUECKUNSADR and Identiv is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding MUENCHRUECKUNSADR 110 and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR 110 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 MUENCHRUECKUNSADR i.e., MUENCHRUECKUNSADR and Identiv go up and down completely randomly.
Pair Corralation between MUENCHRUECKUNSADR and Identiv
Assuming the 90 days trading horizon MUENCHRUECKUNSADR 110 is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, MUENCHRUECKUNSADR 110 is 1.24 times less risky than Identiv. The stock trades about -0.02 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 311.00 in Identiv on August 29, 2024 and sell it today you would earn a total of 63.00 from holding Identiv or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MUENCHRUECKUNSADR 110 vs. Identiv
Performance |
| Timeline |
| MUENCHRUECKUNSADR 110 |
| Identiv |
MUENCHRUECKUNSADR and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MUENCHRUECKUNSADR and Identiv
The main advantage of trading using opposite MUENCHRUECKUNSADR and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MUENCHRUECKUNSADR 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.| MUENCHRUECKUNSADR vs. Reinsurance Group of | MUENCHRUECKUNSADR vs. Superior Plus Corp | MUENCHRUECKUNSADR vs. NMI Holdings | MUENCHRUECKUNSADR vs. SIVERS SEMICONDUCTORS AB |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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