Correlation Between Identiv and Cps Technologies

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

By analyzing existing cross correlation between Identiv and Cps Technologies, you can compare the effects of market volatilities on Identiv and Cps Technologies 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 Cps Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identiv and Cps Technologies.

Diversification Opportunities for Identiv and Cps Technologies

0.21

Correlation Coefficient

Identiv  Cps Technologies

Modest diversification

The 3 months correlation between Identiv and Cps is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Cps Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cps Technologies 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 Cps Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cps Technologies has no effect on the direction of Identiv i.e., Identiv and Cps Technologies go up and down completely randomly.

Pair Corralation between Identiv and Cps Technologies

Given the investment horizon of 90 days Identiv is expected to under-perform the Cps Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Identiv is 1.69 times less risky than Cps Technologies. The stock trades about -0.03 of its potential returns per unit of risk. The Cps Technologies is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  363.00  in Cps Technologies on August 26, 2025 and sell it today you would lose (31.00) from holding Cps Technologies or give up 8.54% of portfolio value over 90 days.

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

Identiv  vs.  Cps Technologies

Identiv

Risk-Adjusted Performance

Weakest

Over the last 90 days Identiv has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Identiv is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Cps Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Cps Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cps Technologies is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Identiv and Cps Technologies

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

The idea behind Identiv and Cps Technologies 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.