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
Very good diversification
The 3 months correlation between Identiv and Cricut is -0.42. 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 under-perform the Cricut. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.09 times less risky than Cricut. The stock trades about -0.01 of its potential returns per unit of risk. The Cricut Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 728.00 in Cricut Inc on September 6, 2024 and sell it today you would lose (170.00) from holding Cricut Inc or give up 23.35% 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
Performance |
Timeline |
Identiv |
Cricut Inc |
Identiv and Cricut Volatility Contrast
Predicted Return Density |
Returns |
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.Identiv vs. Rigetti Computing | Identiv vs. Quantum Computing | Identiv vs. Desktop Metal | Identiv vs. D Wave Quantum |
Cricut vs. D Wave Quantum | Cricut vs. Rigetti Computing | Cricut vs. Super Micro Computer | Cricut vs. Quantum Computing |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |