Correlation Between Castellum and Innodata
Can any of the company-specific risk be diversified away by investing in both Castellum 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 Castellum and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Castellum and Innodata, you can compare the effects of market volatilities on Castellum 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 Castellum with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Castellum and Innodata.
Diversification Opportunities for Castellum and Innodata
Good diversification
The 3 months correlation between Castellum and Innodata is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Castellum and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Castellum 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 Castellum 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 Castellum i.e., Castellum and Innodata go up and down completely randomly.
Pair Corralation between Castellum and Innodata
Considering the 90-day investment horizon Castellum is expected to generate 19.62 times less return on investment than Innodata. But when comparing it to its historical volatility, Castellum is 2.37 times less risky than Innodata. It trades about 0.03 of its potential returns per unit of risk. Innodata is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,049 in Innodata on August 27, 2024 and sell it today you would earn a total of 2,428 from holding Innodata or generate 118.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Castellum vs. Innodata
Performance |
| Timeline |
| Castellum |
| Innodata |
Castellum and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Castellum and Innodata
The main advantage of trading using opposite Castellum and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Castellum 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.| Castellum vs. Flint Telecom Group | Castellum vs. Datametrex AI Limited | Castellum vs. TTEC Holdings | Castellum vs. Digatrade Financial Corp |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |