Correlation Between Cyxtera Technologies and Innodata
Can any of the company-specific risk be diversified away by investing in both Cyxtera Technologies 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 Cyxtera Technologies and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cyxtera Technologies and Innodata, you can compare the effects of market volatilities on Cyxtera Technologies 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 Cyxtera Technologies with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cyxtera Technologies and Innodata.
Diversification Opportunities for Cyxtera Technologies and Innodata
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cyxtera and Innodata is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cyxtera Technologies and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Cyxtera Technologies 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 Cyxtera Technologies 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 Cyxtera Technologies i.e., Cyxtera Technologies and Innodata go up and down completely randomly.
Pair Corralation between Cyxtera Technologies and Innodata
If you would invest 1,897 in Innodata on August 24, 2024 and sell it today you would earn a total of 2,726 from holding Innodata or generate 143.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Cyxtera Technologies vs. Innodata
Performance |
| Timeline |
| Cyxtera Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innodata |
Cyxtera Technologies and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cyxtera Technologies and Innodata
The main advantage of trading using opposite Cyxtera Technologies and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cyxtera Technologies 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.| Cyxtera Technologies vs. 9F Inc | Cyxtera Technologies vs. FiscalNote Holdings | Cyxtera Technologies vs. ARB IOT Group | Cyxtera Technologies vs. BigBearai Holdings |
| 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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