Correlation Between Chindata Group and Innodata
Can any of the company-specific risk be diversified away by investing in both Chindata Group and Innodata 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 Chindata Group and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chindata Group Holdings and Innodata, you can compare the effects of market volatilities on Chindata Group and Innodata 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 Chindata Group with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chindata Group and Innodata.
Diversification Opportunities for Chindata Group and Innodata
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chindata and Innodata is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Chindata Group Holdings and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Chindata Group 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 Chindata Group Holdings are associated (or correlated) with Innodata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodata has no effect on the direction of Chindata Group i.e., Chindata Group and Innodata go up and down completely randomly.
Pair Corralation between Chindata Group and Innodata
If you would invest 790.00 in Chindata Group Holdings on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Chindata Group Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Chindata Group Holdings vs. Innodata
Performance |
| Timeline |
| Chindata Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innodata |
Chindata Group and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chindata Group and Innodata
The main advantage of trading using opposite Chindata Group and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chindata Group position performs unexpectedly, Innodata 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 Innodata will offset losses from the drop in Innodata's long position.| Chindata Group vs. GDS Holdings | Chindata Group vs. ExlService Holdings | Chindata Group vs. Gartner | Chindata Group vs. VNET Group DRC |
| Innodata vs. ASGN Inc | Innodata vs. Formula Systems 1985 | Innodata vs. FiscalNote Holdings | Innodata vs. International Business Machines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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