Correlation Between Quantum and Identiv
Can any of the company-specific risk be diversified away by investing in both Quantum 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 Quantum and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Quantum and Identiv, you can compare the effects of market volatilities on Quantum 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 Quantum with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quantum and Identiv.
Diversification Opportunities for Quantum and Identiv
Very weak diversification
The 3 months correlation between Quantum and Identiv is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Quantum and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Quantum 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 Quantum 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 Quantum i.e., Quantum and Identiv go up and down completely randomly.
Pair Corralation between Quantum and Identiv
Given the investment horizon of 90 days Quantum is expected to under-perform the Identiv. In addition to that, Quantum is 3.65 times more volatile than Identiv. It trades about -0.02 of its total potential returns per unit of risk. Identiv is currently generating about 0.1 per unit of volatility. If you would invest 370.00 in Identiv on August 24, 2024 and sell it today you would earn a total of 25.00 from holding Identiv or generate 6.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Quantum vs. Identiv
Performance |
| Timeline |
| Quantum |
| Identiv |
Quantum and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Quantum and Identiv
The main advantage of trading using opposite Quantum and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quantum 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.| Quantum vs. Rigetti Computing | Quantum vs. D Wave Quantum | Quantum vs. IONQ Inc | Quantum vs. Desktop Metal |
| Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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