Correlation Between Computer Task and Innodata
Can any of the company-specific risk be diversified away by investing in both Computer Task 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 Computer Task and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Computer Task Group and Innodata, you can compare the effects of market volatilities on Computer Task 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 Computer Task with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Computer Task and Innodata.
Diversification Opportunities for Computer Task and Innodata
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Computer and Innodata is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Computer Task Group and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Computer Task 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 Computer Task Group 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 Computer Task i.e., Computer Task and Innodata go up and down completely randomly.
Pair Corralation between Computer Task and Innodata
If you would invest 2,049 in Innodata on August 28, 2024 and sell it today you would earn a total of 2,490 from holding Innodata or generate 121.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Computer Task Group vs. Innodata
Performance |
| Timeline |
| Computer Task Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innodata |
Computer Task and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Computer Task and Innodata
The main advantage of trading using opposite Computer Task and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Computer Task 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.| Computer Task vs. The Hackett Group | Computer Task vs. CSP Inc | Computer Task vs. Nayax | Computer Task vs. Formula Systems 1985 |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |