Correlation Between Wolters Kluwer and Identiv
Can any of the company-specific risk be diversified away by investing in both Wolters Kluwer 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 Wolters Kluwer and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wolters Kluwer NV and Identiv, you can compare the effects of market volatilities on Wolters Kluwer 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 Wolters Kluwer with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wolters Kluwer and Identiv.
Diversification Opportunities for Wolters Kluwer and Identiv
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wolters and Identiv is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wolters Kluwer NV and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Wolters Kluwer 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 Wolters Kluwer NV 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 Wolters Kluwer i.e., Wolters Kluwer and Identiv go up and down completely randomly.
Pair Corralation between Wolters Kluwer and Identiv
Assuming the 90 days trading horizon Wolters Kluwer NV is expected to generate 0.39 times more return on investment than Identiv. However, Wolters Kluwer NV is 2.56 times less risky than Identiv. It trades about 0.08 of its potential returns per unit of risk. Identiv is currently generating about -0.48 per unit of risk. If you would invest 16,350 in Wolters Kluwer NV on October 16, 2024 and sell it today you would earn a total of 170.00 from holding Wolters Kluwer NV or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wolters Kluwer NV vs. Identiv
Performance |
| Timeline |
| Wolters Kluwer NV |
| Identiv |
Wolters Kluwer and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wolters Kluwer and Identiv
The main advantage of trading using opposite Wolters Kluwer and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wolters Kluwer 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.| Wolters Kluwer vs. Pearson plc | Wolters Kluwer vs. Superior Plus Corp | Wolters Kluwer vs. NMI Holdings | Wolters Kluwer vs. SIVERS SEMICONDUCTORS AB |
| Identiv vs. FIREWEED METALS P | Identiv vs. MAGNUM MINING EXP | Identiv vs. GREENX METALS LTD | Identiv vs. Nordic Semiconductor ASA |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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