Correlation Between USS and Identiv
Can any of the company-specific risk be diversified away by investing in both USS 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 USS and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between USS Co and Identiv, you can compare the effects of market volatilities on USS 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 USS with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of USS and Identiv.
Diversification Opportunities for USS and Identiv
Good diversification
The 3 months correlation between USS and Identiv is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding USS Co and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and USS 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 USS Co 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 USS i.e., USS and Identiv go up and down completely randomly.
Pair Corralation between USS and Identiv
Assuming the 90 days horizon USS Co is expected to generate 0.35 times more return on investment than Identiv. However, USS Co is 2.85 times less risky than Identiv. It trades about 0.03 of its potential returns per unit of risk. Identiv is currently generating about -0.01 per unit of risk. If you would invest 735.00 in USS Co on September 2, 2024 and sell it today you would earn a total of 130.00 from holding USS Co or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
USS Co vs. Identiv
Performance |
| Timeline |
| USS Co |
| Identiv |
USS and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with USS and Identiv
The main advantage of trading using opposite USS and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if USS 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.| USS vs. Superior Plus Corp | USS vs. NMI Holdings | USS vs. Origin Agritech | USS vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. SBA Communications Corp | Identiv vs. Verizon Communications | Identiv vs. Iridium Communications | Identiv vs. THORNEY TECHS LTD |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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