Correlation Between Identiv and RYANAIR HLDGS

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

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

Diversification Opportunities for Identiv and RYANAIR HLDGS

-0.09

Correlation Coefficient

Identiv  RYANAIR HLDGS

Good diversification

The 3 months correlation between Identiv and RYANAIR is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and RYANAIR HLDGS ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RYANAIR HLDGS ADR 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 RYANAIR HLDGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RYANAIR HLDGS ADR has no effect on the direction of Identiv i.e., Identiv and RYANAIR HLDGS go up and down completely randomly.

Pair Corralation between Identiv and RYANAIR HLDGS

Assuming the 90 days trading horizon Identiv is expected to under-perform the RYANAIR HLDGS. In addition to that, Identiv is 1.85 times more volatile than RYANAIR HLDGS ADR. It trades about -0.05 of its total potential returns per unit of risk. RYANAIR HLDGS ADR is currently generating about -0.01 per unit of volatility. If you would invest  4,135  in RYANAIR HLDGS ADR on December 31, 2024 and sell it today you would lose (95.00) from holding RYANAIR HLDGS ADR or give up 2.3% of portfolio value over 90 days.

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

Identiv  vs.  RYANAIR HLDGS ADR

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 unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

RYANAIR HLDGS ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days RYANAIR HLDGS ADR has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, RYANAIR HLDGS is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Identiv and RYANAIR HLDGS

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

The idea behind Identiv and RYANAIR HLDGS ADR 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.