Correlation Between Identiv and ALLIANZ TECHNOTRLS-025

Can any of the company-specific risk be diversified away by investing in both Identiv and ALLIANZ TECHNOTRLS-025 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 ALLIANZ TECHNOTRLS-025 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Identiv and ALLIANZ TECHNOTRLS 025, you can compare the effects of market volatilities on Identiv and ALLIANZ TECHNOTRLS-025 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 ALLIANZ TECHNOTRLS-025. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and ALLIANZ TECHNOTRLS-025.

Diversification Opportunities for Identiv and ALLIANZ TECHNOTRLS-025

0.57

Correlation Coefficient

Identiv  ALLIANZ TECHNOTRLS-025

Very weak diversification

The 3 months correlation between Identiv and ALLIANZ is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and ALLIANZ TECHNOTRLS 025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ TECHNOTRLS 025 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 ALLIANZ TECHNOTRLS-025. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ TECHNOTRLS 025 has no effect on the direction of Identiv i.e., Identiv and ALLIANZ TECHNOTRLS-025 go up and down completely randomly.

Pair Corralation between Identiv and ALLIANZ TECHNOTRLS-025

Assuming the 90 days trading horizon Identiv is expected to generate 1.66 times more return on investment than ALLIANZ TECHNOTRLS-025. However, Identiv is 1.66 times more volatile than ALLIANZ TECHNOTRLS 025. It trades about -0.03 of its potential returns per unit of risk. ALLIANZ TECHNOTRLS 025 is currently generating about -0.08 per unit of risk. If you would invest  350.00  in Identiv on December 23, 2024 and sell it today you would lose (37.00) from holding Identiv or give up 10.57% of portfolio value over 90 days.

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

Identiv  vs.  ALLIANZ TECHNOTRLS 025

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 latest uncertain performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

ALLIANZ TECHNOTRLS 025

Risk-Adjusted Performance

Very Weak

Over the last 90 days ALLIANZ TECHNOTRLS 025 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Identiv and ALLIANZ TECHNOTRLS-025

The main advantage of trading using opposite Identiv and ALLIANZ TECHNOTRLS-025 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, ALLIANZ TECHNOTRLS-025 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 ALLIANZ TECHNOTRLS-025 will offset losses from the drop in ALLIANZ TECHNOTRLS-025's long position.

The idea behind Identiv and ALLIANZ TECHNOTRLS 025 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.