Correlation Between Innovid Corp and Stagwell
Can any of the company-specific risk be diversified away by investing in both Innovid Corp and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innovid Corp and Stagwell, you can compare the effects of market volatilities on Innovid Corp and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innovid Corp and Stagwell.
Diversification Opportunities for Innovid Corp and Stagwell
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innovid and Stagwell is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Innovid Corp and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of Innovid Corp i.e., Innovid Corp and Stagwell go up and down completely randomly.
Pair Corralation between Innovid Corp and Stagwell
Considering the 90-day investment horizon Innovid Corp is expected to generate 0.23 times more return on investment than Stagwell. However, Innovid Corp is 4.42 times less risky than Stagwell. It trades about 0.27 of its potential returns per unit of risk. Stagwell is currently generating about -0.06 per unit of risk. If you would invest 303.00 in Innovid Corp on November 3, 2024 and sell it today you would earn a total of 9.00 from holding Innovid Corp or generate 2.97% 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. Stagwell
Performance |
| Timeline |
| Innovid Corp |
| Stagwell |
Innovid Corp and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innovid Corp and Stagwell
The main advantage of trading using opposite Innovid Corp and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innovid Corp position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell'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 |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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