Correlation Between Identiv and CSP

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

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

Diversification Opportunities for Identiv and CSP

-0.03

Correlation Coefficient

Identiv  CSP

Good diversification

The 3 months correlation between Identiv and CSP is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Identiv and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP 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 CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Identiv i.e., Identiv and CSP go up and down completely randomly.

Pair Corralation between Identiv and CSP

Given the investment horizon of 90 days Identiv is expected to generate 0.62 times more return on investment than CSP. However, Identiv is 1.62 times less risky than CSP. It trades about 0.05 of its potential returns per unit of risk. CSP Inc is currently generating about -0.07 per unit of risk. If you would invest  320.00  in Identiv on April 21, 2025 and sell it today you would earn a total of  20.00  from holding Identiv or generate 6.25% return on investment over 90 days.

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

Identiv  vs.  CSP Inc

Identiv

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 3 (%) 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.

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.

Pair Trading with Identiv and CSP

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

The idea behind Identiv and CSP Inc 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.