Correlation Between Innodata and Digimarc
Can any of the company-specific risk be diversified away by investing in both Innodata and Digimarc 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 Digimarc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innodata and Digimarc, you can compare the effects of market volatilities on Innodata and Digimarc 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 Digimarc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innodata and Digimarc.
Diversification Opportunities for Innodata and Digimarc
Poor diversification
The 3 months correlation between Innodata and Digimarc is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Innodata and Digimarc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digimarc 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 Digimarc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digimarc has no effect on the direction of Innodata i.e., Innodata and Digimarc go up and down completely randomly.
Pair Corralation between Innodata and Digimarc
Given the investment horizon of 90 days Innodata is expected to generate 2.46 times more return on investment than Digimarc. However, Innodata is 2.46 times more volatile than Digimarc. It trades about 0.13 of its potential returns per unit of risk. Digimarc is currently generating about 0.06 per unit of risk. If you would invest 1,456 in Innodata on September 5, 2024 and sell it today you would earn a total of 2,582 from holding Innodata or generate 177.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innodata vs. Digimarc
Performance |
| Timeline |
| Innodata |
| Digimarc |
Innodata and Digimarc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innodata and Digimarc
The main advantage of trading using opposite Innodata and Digimarc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innodata position performs unexpectedly, Digimarc 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 Digimarc will offset losses from the drop in Digimarc's long position.| Innodata vs. ASGN Inc | Innodata vs. Formula Systems 1985 | Innodata vs. FiscalNote Holdings | Innodata vs. International Business Machines |
| Digimarc vs. Innodata | Digimarc vs. International Business Machines | Digimarc vs. Aurora Innovation | Digimarc vs. BigBearai Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| 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 | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |