Correlation Between Identiv and Airgain

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

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

Diversification Opportunities for Identiv and Airgain

0.7

Correlation Coefficient

Identiv  Airgain

Poor diversification

The 3 months correlation between Identiv and Airgain is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and Airgain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airgain 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 Airgain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airgain has no effect on the direction of Identiv i.e., Identiv and Airgain go up and down completely randomly.

Pair Corralation between Identiv and Airgain

Given the investment horizon of 90 days Identiv is expected to generate 2.04 times less return on investment than Airgain. But when comparing it to its historical volatility, Identiv is 1.13 times less risky than Airgain. It trades about 0.02 of its potential returns per unit of risk. Airgain is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  419.00  in Airgain on May 5, 2025 and sell it today you would earn a total of  22.00  from holding Airgain or generate 5.25% return on investment over 90 days.

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

Identiv  vs.  Airgain

Identiv

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Airgain

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Airgain are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Airgain may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Identiv and Airgain

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

The idea behind Identiv and Airgain 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.