Correlation Between Identiv and CAIXABANK UNADR

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

By analyzing existing cross correlation between Identiv and CAIXABANK UNADR 13, you can compare the effects of market volatilities on Identiv and CAIXABANK UNADR 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 UNADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and CAIXABANK UNADR.

Diversification Opportunities for Identiv and CAIXABANK UNADR

0.1

Correlation Coefficient

Identiv  CAIXABANK UNADR

Average diversification

The 3 months correlation between Identiv and CAIXABANK is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and CAIXABANK UNADR 13 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAIXABANK UNADR 13 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 UNADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAIXABANK UNADR 13 has no effect on the direction of Identiv i.e., Identiv and CAIXABANK UNADR go up and down completely randomly.

Pair Corralation between Identiv and CAIXABANK UNADR

Assuming the 90 days trading horizon Identiv is expected to generate 1.66 times more return on investment than CAIXABANK UNADR. However, Identiv is 1.66 times more volatile than CAIXABANK UNADR 13. It trades about 0.14 of its potential returns per unit of risk. CAIXABANK UNADR 13 is currently generating about 0.02 per unit of risk. If you would invest  307.00  in Identiv on September 13, 2024 and sell it today you would earn a total of  82.00  from holding Identiv or generate 26.71% return on investment over 90 days.

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

Identiv  vs.  CAIXABANK UNADR 13

Identiv

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Identiv reported solid returns over the last few months and may actually be approaching a breakup point.

CAIXABANK UNADR 13

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CAIXABANK UNADR 13 are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, CAIXABANK UNADR is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Identiv and CAIXABANK UNADR

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

The idea behind Identiv and CAIXABANK UNADR 13 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.