Correlation Between Velo3D and Identiv

Can any of the company-specific risk be diversified away by investing in both Velo3D 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 Velo3D and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Velo3D Inc and Identiv, you can compare the effects of market volatilities on Velo3D 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 Velo3D with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Velo3D and Identiv.

Diversification Opportunities for Velo3D and Identiv

0.0

Correlation Coefficient

Velo3D  Identiv

Pay attention - limited upside

The 3 months correlation between Velo3D and Identiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Velo3D Inc and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Velo3D 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 Velo3D Inc 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 Velo3D i.e., Velo3D and Identiv go up and down completely randomly.

Pair Corralation between Velo3D and Identiv

If you would invest (100.00) in Velo3D Inc on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Velo3D Inc 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

Velo3D Inc  vs.  Identiv

Velo3D Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Velo3D Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Velo3D is not utilizing all of its potentials. The newest 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 Velo3D and Identiv

The main advantage of trading using opposite Velo3D and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Velo3D 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 Velo3D Inc 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.