Correlation Between TransAct Technologies and Identiv
Can any of the company-specific risk be diversified away by investing in both TransAct Technologies 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 TransAct Technologies and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TransAct Technologies Incorporated and Identiv, you can compare the effects of market volatilities on TransAct Technologies 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 TransAct Technologies with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of TransAct Technologies and Identiv.
Diversification Opportunities for TransAct Technologies and Identiv
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TransAct and Identiv is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding TransAct Technologies Incorpor and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and TransAct Technologies 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 TransAct Technologies Incorporated 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 TransAct Technologies i.e., TransAct Technologies and Identiv go up and down completely randomly.
Pair Corralation between TransAct Technologies and Identiv
Given the investment horizon of 90 days TransAct Technologies Incorporated is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, TransAct Technologies Incorporated is 1.12 times less risky than Identiv. The stock trades about -0.01 of its potential returns per unit of risk. The Identiv is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 607.00 in Identiv on November 1, 2024 and sell it today you would lose (251.00) from holding Identiv or give up 41.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TransAct Technologies Incorpor vs. Identiv
Performance |
| Timeline |
| TransAct Technologies |
| Identiv |
TransAct Technologies and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TransAct Technologies and Identiv
The main advantage of trading using opposite TransAct Technologies and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TransAct Technologies 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.| TransAct Technologies vs. AstroNova | TransAct Technologies vs. Key Tronic | TransAct Technologies vs. FARO Technologies | TransAct Technologies vs. Hooker Furniture |
| 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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