Correlation Between AWILCO DRILLING and Identiv

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

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

Diversification Opportunities for AWILCO DRILLING and Identiv

-0.1

Correlation Coefficient

AWILCO DRILLING  Identiv

Good diversification

The 3 months correlation between AWILCO and Identiv is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding AWILCO DRILLING PLC and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and AWILCO DRILLING 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 AWILCO DRILLING PLC 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 AWILCO DRILLING i.e., AWILCO DRILLING and Identiv go up and down completely randomly.

Pair Corralation between AWILCO DRILLING and Identiv

Assuming the 90 days trading horizon AWILCO DRILLING PLC is expected to under-perform the Identiv. In addition to that, AWILCO DRILLING is 1.58 times more volatile than Identiv. It trades about -0.01 of its total potential returns per unit of risk. Identiv is currently generating about 0.15 per unit of volatility. If you would invest  306.00  in Identiv on September 15, 2024 and sell it today you would earn a total of  91.00  from holding Identiv or generate 29.74% return on investment over 90 days.

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

AWILCO DRILLING PLC  vs.  Identiv

AWILCO DRILLING PLC

Risk-Adjusted Performance

0 of 100

Very Weak

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

Identiv

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 12 (%) 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.

Pair Trading with AWILCO DRILLING and Identiv

The main advantage of trading using opposite AWILCO DRILLING and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AWILCO DRILLING 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 AWILCO DRILLING PLC 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.