Correlation Between Cricut and Identiv
Can any of the company-specific risk be diversified away by investing in both Cricut 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 Cricut and Identiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cricut Inc and Identiv, you can compare the effects of market volatilities on Cricut 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 Cricut with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cricut and Identiv.
Diversification Opportunities for Cricut and Identiv
Very good diversification
The 3 months correlation between Cricut and Identiv is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cricut Inc and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Cricut 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 Cricut 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 Cricut i.e., Cricut and Identiv go up and down completely randomly.
Pair Corralation between Cricut and Identiv
Given the investment horizon of 90 days Cricut is expected to generate 4.59 times less return on investment than Identiv. In addition to that, Cricut is 1.17 times more volatile than Identiv. It trades about 0.02 of its total potential returns per unit of risk. Identiv is currently generating about 0.09 per unit of volatility. If you would invest 340.00 in Identiv on September 10, 2024 and sell it today you would earn a total of 52.00 from holding Identiv or generate 15.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Cricut Inc vs. Identiv
Performance |
Timeline |
Cricut Inc |
Identiv |
Cricut and Identiv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cricut and Identiv
The main advantage of trading using opposite Cricut and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cricut 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.Cricut vs. Nano Dimension | Cricut vs. 3D Systems | Cricut vs. Markforged Holding Corp | Cricut vs. Stratasys |
Identiv vs. TransAct Technologies Incorporated | Identiv vs. AGM Group Holdings | Identiv vs. AstroNova | Identiv vs. Key Tronic |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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