Correlation Between Innovid Corp and Fluent
Can any of the company-specific risk be diversified away by investing in both Innovid Corp and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovid Corp and Fluent Inc, you can compare the effects of market volatilities on Innovid Corp and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovid Corp and Fluent.
Diversification Opportunities for Innovid Corp and Fluent
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovid and Fluent is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Innovid Corp and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Innovid Corp i.e., Innovid Corp and Fluent go up and down completely randomly.
Pair Corralation between Innovid Corp and Fluent
Considering the 90-day investment horizon Innovid Corp is expected to generate 1.29 times more return on investment than Fluent. However, Innovid Corp is 1.29 times more volatile than Fluent Inc. It trades about 0.04 of its potential returns per unit of risk. Fluent Inc is currently generating about -0.01 per unit of risk. If you would invest 209.00 in Innovid Corp on August 30, 2024 and sell it today you would earn a total of 95.00 from holding Innovid Corp or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innovid Corp vs. Fluent Inc
Performance |
| Timeline |
| Innovid Corp |
| Fluent Inc |
Innovid Corp and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovid Corp and Fluent
The main advantage of trading using opposite Innovid Corp and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovid Corp position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent'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 |
| Fluent vs. Capital Income Builder | Fluent vs. Direxion Daily FTSE | Fluent vs. Dodge Global Stock | Fluent vs. Collegium Pharmaceutical |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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