Correlation Between STRC Old and Identiv

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

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

Diversification Opportunities for STRC Old and Identiv

0.0

Correlation Coefficient

STRC Old  Identiv

Pay attention - limited upside

The 3 months correlation between STRC and Identiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding STRC Old and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and STRC Old 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 STRC Old 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 STRC Old i.e., STRC Old and Identiv go up and down completely randomly.

Pair Corralation between STRC Old and Identiv

If you would invest (100.00) in STRC Old on December 28, 2024 and sell it today you would earn a total of  100.00  from holding STRC Old or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

STRC Old  vs.  Identiv

STRC Old

Risk-Adjusted Performance

Very Weak

Over the last 90 days STRC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, STRC Old is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

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. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with STRC Old and Identiv

The main advantage of trading using opposite STRC Old and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRC Old 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 STRC Old 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.