Correlation Between Sinopharm Group and Identiv
Can any of the company-specific risk be diversified away by investing in both Sinopharm 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 Sinopharm Group and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sinopharm Group Co and Identiv, you can compare the effects of market volatilities on Sinopharm 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 Sinopharm Group with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sinopharm Group and Identiv.
Diversification Opportunities for Sinopharm Group and Identiv
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sinopharm and Identiv is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sinopharm Group Co and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Sinopharm 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 Sinopharm Group 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 Sinopharm Group i.e., Sinopharm Group and Identiv go up and down completely randomly.
Pair Corralation between Sinopharm Group and Identiv
Assuming the 90 days horizon Sinopharm Group is expected to generate 3.43 times less return on investment than Identiv. But when comparing it to its historical volatility, Sinopharm Group Co is 1.36 times less risky than Identiv. It trades about 0.09 of its potential returns per unit of risk. Identiv is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 322.00 in Identiv on August 28, 2024 and sell it today you would earn a total of 49.00 from holding Identiv or generate 15.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sinopharm Group Co vs. Identiv
Performance |
| Timeline |
| Sinopharm Group |
| Identiv |
Sinopharm Group and Identiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sinopharm Group and Identiv
The main advantage of trading using opposite Sinopharm Group and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sinopharm 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.| Sinopharm Group vs. CarsalesCom | Sinopharm Group vs. FUTURE GAMING GRP | Sinopharm Group vs. HOCHSCHILD MINING | Sinopharm Group vs. Globe Trade Centre |
| Identiv vs. Superior Plus Corp | Identiv vs. Origin Agritech | Identiv vs. INTUITIVE SURGICAL | Identiv vs. Volkswagen AG |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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