Correlation Between CSP and Identiv

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

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

Diversification Opportunities for CSP and Identiv

-0.03

Correlation Coefficient

CSP  Identiv

Good diversification

The 3 months correlation between CSP and Identiv is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and CSP 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 CSP 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 CSP i.e., CSP and Identiv go up and down completely randomly.

Pair Corralation between CSP and Identiv

Given the investment horizon of 90 days CSP Inc is expected to under-perform the Identiv. In addition to that, CSP is 1.61 times more volatile than Identiv. It trades about -0.09 of its total potential returns per unit of risk. Identiv is currently generating about 0.05 per unit of volatility. If you would invest  320.00  in Identiv on April 22, 2025 and sell it today you would earn a total of  22.00  from holding Identiv or generate 6.88% return on investment over 90 days.

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

CSP Inc  vs.  Identiv

CSP Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Identiv

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Identiv may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CSP and Identiv

The main advantage of trading using opposite CSP and Identiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP 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 CSP Inc 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.