Correlation Between Reinsurance Group and Identiv
Can any of the company-specific risk be diversified away by investing in both Reinsurance Group 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 Reinsurance Group and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Reinsurance Group of and Identiv, you can compare the effects of market volatilities on Reinsurance Group 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 Reinsurance Group with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Reinsurance Group and Identiv.
Diversification Opportunities for Reinsurance Group and Identiv
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Reinsurance and Identiv is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Reinsurance Group of and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Reinsurance Group 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 Reinsurance Group of 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 Reinsurance Group i.e., Reinsurance Group and Identiv go up and down completely randomly.
Pair Corralation between Reinsurance Group and Identiv
Assuming the 90 days trading horizon Reinsurance Group of is expected to generate 0.41 times more return on investment than Identiv. However, Reinsurance Group of is 2.42 times less risky than Identiv. It trades about 0.07 of its potential returns per unit of risk. Identiv is currently generating about -0.02 per unit of risk. If you would invest 13,580 in Reinsurance Group of on November 5, 2024 and sell it today you would earn a total of 8,420 from holding Reinsurance Group of or generate 62.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Reinsurance Group of vs. Identiv
Performance |
| Timeline |
| Reinsurance Group |
| Identiv |
Reinsurance Group and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Reinsurance Group and Identiv
The main advantage of trading using opposite Reinsurance Group and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Reinsurance Group 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.| Reinsurance Group vs. Richardson Electronics | Reinsurance Group vs. Samsung Electronics Co | Reinsurance Group vs. HK Electric Investments | Reinsurance Group vs. SEI INVESTMENTS |
| Identiv vs. Singapore Telecommunications Limited | Identiv vs. ecotel communication ag | Identiv vs. G III Apparel Group | Identiv vs. Iridium Communications |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |