Correlation Between ZINZINO AB and Identiv

Can any of the company-specific risk be diversified away by investing in both ZINZINO AB 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 ZINZINO AB and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ZINZINO AB B and Identiv, you can compare the effects of market volatilities on ZINZINO AB 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 ZINZINO AB with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZINZINO AB and Identiv.

Diversification Opportunities for ZINZINO AB and Identiv

-0.67

Correlation Coefficient

ZINZINO AB  Identiv

Excellent diversification

The 3 months correlation between ZINZINO and Identiv is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding ZINZINO AB B and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and ZINZINO AB 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 ZINZINO AB B 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 ZINZINO AB i.e., ZINZINO AB and Identiv go up and down completely randomly.

Pair Corralation between ZINZINO AB and Identiv

Assuming the 90 days horizon ZINZINO AB B is expected to generate 1.11 times more return on investment than Identiv. However, ZINZINO AB is 1.11 times more volatile than Identiv. It trades about 0.25 of its potential returns per unit of risk. Identiv is currently generating about -0.06 per unit of risk. If you would invest  728.00  in ZINZINO AB B on December 21, 2024 and sell it today you would earn a total of  556.00  from holding ZINZINO AB B or generate 76.37% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ZINZINO AB B  vs.  Identiv

ZINZINO AB B

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ZINZINO AB B are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ZINZINO AB reported solid returns over the last few months and may actually be approaching a breakup point.

Identiv

Risk-Adjusted Performance

Very Weak

Over the last 90 days Identiv has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with ZINZINO AB and Identiv

The main advantage of trading using opposite ZINZINO AB and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZINZINO AB 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.

The idea behind ZINZINO AB B and Identiv pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.