Correlation Between Nordic Semiconductor and Identiv
Can any of the company-specific risk be diversified away by investing in both Nordic Semiconductor 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 Nordic Semiconductor and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nordic Semiconductor ASA and Identiv, you can compare the effects of market volatilities on Nordic Semiconductor 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 Nordic Semiconductor with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nordic Semiconductor and Identiv.
Diversification Opportunities for Nordic Semiconductor and Identiv
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Nordic and Identiv is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Nordic Semiconductor ASA and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Nordic Semiconductor 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 Nordic Semiconductor ASA 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 Nordic Semiconductor i.e., Nordic Semiconductor and Identiv go up and down completely randomly.
Pair Corralation between Nordic Semiconductor and Identiv
Assuming the 90 days horizon Nordic Semiconductor ASA is expected to generate 0.72 times more return on investment than Identiv. However, Nordic Semiconductor ASA is 1.39 times less risky than Identiv. It trades about 0.31 of its potential returns per unit of risk. Identiv is currently generating about -0.48 per unit of risk. If you would invest 848.00 in Nordic Semiconductor ASA on October 16, 2024 and sell it today you would earn a total of 76.00 from holding Nordic Semiconductor ASA or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Nordic Semiconductor ASA vs. Identiv
Performance |
| Timeline |
| Nordic Semiconductor ASA |
| Identiv |
Nordic Semiconductor and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nordic Semiconductor and Identiv
The main advantage of trading using opposite Nordic Semiconductor and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nordic Semiconductor 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.| Nordic Semiconductor vs. Stag Industrial | Nordic Semiconductor vs. Japan Tobacco | Nordic Semiconductor vs. MCEWEN MINING INC | Nordic Semiconductor vs. Dairy Farm International |
| Identiv vs. Highlight Communications AG | Identiv vs. BII Railway Transportation | Identiv vs. COMBA TELECOM SYST | Identiv vs. BROADWIND ENRGY |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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