Correlation Between Identiv and Caixabank Seleccin

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

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

Diversification Opportunities for Identiv and Caixabank Seleccin

0.49

Correlation Coefficient

Identiv  Caixabank Seleccin

Very weak diversification

The 3 months correlation between Identiv and Caixabank is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Caixabank Seleccin Tendencias in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caixabank Seleccin and Identiv 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 Identiv are associated (or correlated) with Caixabank Seleccin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caixabank Seleccin has no effect on the direction of Identiv i.e., Identiv and Caixabank Seleccin go up and down completely randomly.

Pair Corralation between Identiv and Caixabank Seleccin

Assuming the 90 days trading horizon Identiv is expected to under-perform the Caixabank Seleccin. In addition to that, Identiv is 4.1 times more volatile than Caixabank Seleccin Tendencias. It trades about -0.05 of its total potential returns per unit of risk. Caixabank Seleccin Tendencias is currently generating about -0.09 per unit of volatility. If you would invest  1,659  in Caixabank Seleccin Tendencias on December 26, 2024 and sell it today you would lose (79.00) from holding Caixabank Seleccin Tendencias or give up 4.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	96.72%
Values	Daily Returns

Identiv  vs.  Caixabank Seleccin Tendencias

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 fragile 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.

Caixabank Seleccin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Caixabank Seleccin Tendencias has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Caixabank Seleccin is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Identiv and Caixabank Seleccin

The main advantage of trading using opposite Identiv and Caixabank Seleccin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Caixabank Seleccin 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 Caixabank Seleccin will offset losses from the drop in Caixabank Seleccin's long position.

The idea behind Identiv and Caixabank Seleccin Tendencias 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.