Correlation Between Corporate Travel and Identiv
Can any of the company-specific risk be diversified away by investing in both Corporate Travel 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 Corporate Travel and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and Identiv, you can compare the effects of market volatilities on Corporate Travel 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 Corporate Travel with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and Identiv.
Diversification Opportunities for Corporate Travel and Identiv
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Corporate and Identiv is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Corporate Travel 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 Corporate Travel Management 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 Corporate Travel i.e., Corporate Travel and Identiv go up and down completely randomly.
Pair Corralation between Corporate Travel and Identiv
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 0.69 times more return on investment than Identiv. However, Corporate Travel Management is 1.46 times less risky than Identiv. It trades about -0.06 of its potential returns per unit of risk. Identiv is currently generating about -0.08 per unit of risk. If you would invest 958.00 in Corporate Travel Management on July 7, 2024 and sell it today you would lose (208.00) from holding Corporate Travel Management or give up 21.71% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Corporate Travel Management vs. Identiv
Performance |
Timeline |
Corporate Travel Man |
Identiv |
Corporate Travel and Identiv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Corporate Travel and Identiv
The main advantage of trading using opposite Corporate Travel and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel 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.Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc | Corporate Travel vs. Apple Inc |
Identiv vs. Superior Plus Corp | Identiv vs. NMI Holdings | Identiv vs. SIVERS SEMICONDUCTORS AB | Identiv vs. NorAm Drilling AS |
Check out your portfolio center.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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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