Correlation Between Innovid Corp and AdTheorent Holding
Can any of the company-specific risk be diversified away by investing in both Innovid Corp and AdTheorent Holding 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 Innovid Corp and AdTheorent Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovid Corp and AdTheorent Holding, you can compare the effects of market volatilities on Innovid Corp and AdTheorent Holding 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 Innovid Corp with a short position of AdTheorent Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovid Corp and AdTheorent Holding.
Diversification Opportunities for Innovid Corp and AdTheorent Holding
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovid and AdTheorent is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Innovid Corp and AdTheorent Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AdTheorent Holding and Innovid Corp 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 Innovid Corp are associated (or correlated) with AdTheorent Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AdTheorent Holding has no effect on the direction of Innovid Corp i.e., Innovid Corp and AdTheorent Holding go up and down completely randomly.
Pair Corralation between Innovid Corp and AdTheorent Holding
If you would invest 196.00 in Innovid Corp on August 28, 2024 and sell it today you would earn a total of 109.00 from holding Innovid Corp or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Innovid Corp vs. AdTheorent Holding
Performance |
| Timeline |
| Innovid Corp |
| AdTheorent Holding |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Innovid Corp and AdTheorent Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovid Corp and AdTheorent Holding
The main advantage of trading using opposite Innovid Corp and AdTheorent Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovid Corp position performs unexpectedly, AdTheorent Holding 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 AdTheorent Holding will offset losses from the drop in AdTheorent Holding's long position.| Innovid Corp vs. ADTRAN Inc | Innovid Corp vs. Belden Inc | Innovid Corp vs. ADC Therapeutics SA | Innovid Corp vs. Comtech Telecommunications Corp |
| AdTheorent Holding vs. Radcom | AdTheorent Holding vs. Iridium Communications | AdTheorent Holding vs. Digi International | AdTheorent Holding vs. Plexus Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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