Correlation Between NAKED WINES and Identiv
Can any of the company-specific risk be diversified away by investing in both NAKED WINES 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 NAKED WINES and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and Identiv, you can compare the effects of market volatilities on NAKED WINES 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 NAKED WINES with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and Identiv.
Diversification Opportunities for NAKED WINES and Identiv
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NAKED and Identiv is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and NAKED WINES 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 NAKED WINES PLC 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 NAKED WINES i.e., NAKED WINES and Identiv go up and down completely randomly.
Pair Corralation between NAKED WINES and Identiv
Assuming the 90 days horizon NAKED WINES PLC is expected to under-perform the Identiv. In addition to that, NAKED WINES is 1.29 times more volatile than Identiv. It trades about -0.01 of its total potential returns per unit of risk. Identiv is currently generating about 0.18 per unit of volatility. If you would invest 310.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 61.00 from holding Identiv or generate 19.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. Identiv
Performance |
| Timeline |
| NAKED WINES PLC |
| Identiv |
NAKED WINES and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and Identiv
The main advantage of trading using opposite NAKED WINES and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES 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.| NAKED WINES vs. Superior Plus Corp | NAKED WINES vs. NMI Holdings | NAKED WINES vs. Origin Agritech | NAKED WINES vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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