Correlation Between MYFAIR GOLD and Identiv

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

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

Diversification Opportunities for MYFAIR GOLD and Identiv

0.28

Correlation Coefficient

MYFAIR GOLD  Identiv

Modest diversification

The 3 months correlation between MYFAIR and Identiv is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding MYFAIR GOLD P and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and MYFAIR GOLD 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 MYFAIR GOLD P 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 MYFAIR GOLD i.e., MYFAIR GOLD and Identiv go up and down completely randomly.

Pair Corralation between MYFAIR GOLD and Identiv

Assuming the 90 days horizon MYFAIR GOLD P is expected to under-perform the Identiv. But the stock apears to be less risky and, when comparing its historical volatility, MYFAIR GOLD P is 1.1 times less risky than Identiv. The stock trades about -0.01 of its potential returns per unit of risk. The Identiv is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  392.00  in Identiv on August 30, 2024 and sell it today you would lose (29.00) from holding Identiv or give up 7.4% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

MYFAIR GOLD P  vs.  Identiv

MYFAIR GOLD P

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MYFAIR GOLD P are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MYFAIR GOLD may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Identiv

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 9 (%) 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 MYFAIR GOLD and Identiv

The main advantage of trading using opposite MYFAIR GOLD and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MYFAIR GOLD 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 MYFAIR GOLD P 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.