Correlation Between CITIUS RESOURCES and Identiv

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

By analyzing existing cross correlation between CITIUS RESOURCES LS 005 and Identiv, you can compare the effects of market volatilities on CITIUS RESOURCES 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 CITIUS RESOURCES with a short position of Identiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIUS RESOURCES and Identiv.

Diversification Opportunities for CITIUS RESOURCES and Identiv

0.0

Correlation Coefficient

CITIUS RESOURCES  Identiv

Pay attention - limited upside

The 3 months correlation between CITIUS and Identiv is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITIUS RESOURCES LS 005 and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and CITIUS RESOURCES 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 CITIUS RESOURCES LS 005 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 CITIUS RESOURCES i.e., CITIUS RESOURCES and Identiv go up and down completely randomly.

Pair Corralation between CITIUS RESOURCES and Identiv

If you would invest  374.00  in Identiv on March 18, 2024 and sell it today you would earn a total of  4.00  from holding Identiv or generate 1.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

CITIUS RESOURCES LS 005  vs.  Identiv

CITIUS RESOURCES

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CITIUS RESOURCES LS 005 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CITIUS RESOURCES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Identiv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Identiv has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CITIUS RESOURCES and Identiv

The main advantage of trading using opposite CITIUS RESOURCES and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIUS RESOURCES 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 CITIUS RESOURCES LS 005 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.