Correlation Between THORNEY TECHS and Identiv
Can any of the company-specific risk be diversified away by investing in both THORNEY TECHS 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 THORNEY TECHS and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between THORNEY TECHS LTD and Identiv, you can compare the effects of market volatilities on THORNEY TECHS 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 THORNEY TECHS with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of THORNEY TECHS and Identiv.
Diversification Opportunities for THORNEY TECHS and Identiv
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between THORNEY and Identiv is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding THORNEY TECHS LTD and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and THORNEY TECHS 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 THORNEY TECHS LTD 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 THORNEY TECHS i.e., THORNEY TECHS and Identiv go up and down completely randomly.
Pair Corralation between THORNEY TECHS and Identiv
Assuming the 90 days horizon THORNEY TECHS LTD is expected to under-perform the Identiv. In addition to that, THORNEY TECHS is 1.16 times more volatile than Identiv. It trades about -0.03 of its total potential returns per unit of risk. Identiv is currently generating about 0.04 per unit of volatility. If you would invest 337.00 in Identiv on October 24, 2024 and sell it today you would earn a total of 19.00 from holding Identiv or generate 5.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
THORNEY TECHS LTD vs. Identiv
Performance |
| Timeline |
| THORNEY TECHS LTD |
| Identiv |
THORNEY TECHS and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with THORNEY TECHS and Identiv
The main advantage of trading using opposite THORNEY TECHS and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if THORNEY TECHS 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.| THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc | THORNEY TECHS vs. Apple Inc |
| Identiv vs. Osisko Metals | Identiv vs. Forsys Metals Corp | Identiv vs. THORNEY TECHS LTD | Identiv vs. Air Transport Services |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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