Correlation Between Identiv and Cricut

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

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

Diversification Opportunities for Identiv and Cricut

-0.47

Correlation Coefficient

Identiv  Cricut

Very good diversification

The 3 months correlation between Identiv and Cricut is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Cricut Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cricut Inc and Identiv 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 Identiv are associated (or correlated) with Cricut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cricut Inc has no effect on the direction of Identiv i.e., Identiv and Cricut go up and down completely randomly.

Pair Corralation between Identiv and Cricut

Given the investment horizon of 90 days Identiv is expected to generate 1.09 times more return on investment than Cricut. However, Identiv is 1.09 times more volatile than Cricut Inc. It trades about 0.0 of its potential returns per unit of risk. Cricut Inc is currently generating about -0.03 per unit of risk. If you would invest  395.00  in Identiv on September 9, 2024 and sell it today you would lose (3.00) from holding Identiv or give up 0.76% of portfolio value over 90 days.

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

Identiv  vs.  Cricut Inc

Identiv

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Identiv exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cricut Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cricut Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable fundamental indicators, Cricut is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Identiv and Cricut

The main advantage of trading using opposite Identiv and Cricut positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identiv position performs unexpectedly, Cricut 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 Cricut will offset losses from the drop in Cricut's long position.

The idea behind Identiv and Cricut Inc 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.

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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.