Correlation Between Innodata and ASGN
Can any of the company-specific risk be diversified away by investing in both Innodata and ASGN 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 Innodata and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innodata and ASGN Inc, you can compare the effects of market volatilities on Innodata and ASGN 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 Innodata with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innodata and ASGN.
Diversification Opportunities for Innodata and ASGN
Very good diversification
The 3 months correlation between Innodata and ASGN is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Innodata and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and Innodata 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 Innodata are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of Innodata i.e., Innodata and ASGN go up and down completely randomly.
Pair Corralation between Innodata and ASGN
Given the investment horizon of 90 days Innodata is expected to generate 3.92 times more return on investment than ASGN. However, Innodata is 3.92 times more volatile than ASGN Inc. It trades about 0.11 of its potential returns per unit of risk. ASGN Inc is currently generating about 0.01 per unit of risk. If you would invest 307.00 in Innodata on August 24, 2024 and sell it today you would earn a total of 4,170 from holding Innodata or generate 1358.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innodata vs. ASGN Inc
Performance |
| Timeline |
| Innodata |
| ASGN Inc |
Innodata and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innodata and ASGN
The main advantage of trading using opposite Innodata and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innodata position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |