Correlation Between Innodata and Wilhelmina
Can any of the company-specific risk be diversified away by investing in both Innodata and Wilhelmina 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 Wilhelmina into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innodata and Wilhelmina, you can compare the effects of market volatilities on Innodata and Wilhelmina 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 Wilhelmina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innodata and Wilhelmina.
Diversification Opportunities for Innodata and Wilhelmina
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Innodata and Wilhelmina is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Innodata and Wilhelmina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilhelmina 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 Wilhelmina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilhelmina has no effect on the direction of Innodata i.e., Innodata and Wilhelmina go up and down completely randomly.
Pair Corralation between Innodata and Wilhelmina
Given the investment horizon of 90 days Innodata is expected to generate 5.94 times more return on investment than Wilhelmina. However, Innodata is 5.94 times more volatile than Wilhelmina. It trades about 0.21 of its potential returns per unit of risk. Wilhelmina is currently generating about 0.28 per unit of risk. If you would invest 2,168 in Innodata on August 30, 2024 and sell it today you would earn a total of 1,665 from holding Innodata or generate 76.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innodata vs. Wilhelmina
Performance |
| Timeline |
| Innodata |
| Wilhelmina |
Innodata and Wilhelmina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innodata and Wilhelmina
The main advantage of trading using opposite Innodata and Wilhelmina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innodata position performs unexpectedly, Wilhelmina 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 Wilhelmina will offset losses from the drop in Wilhelmina's long position.| Innodata vs. ASGN Inc | Innodata vs. Formula Systems 1985 | Innodata vs. FiscalNote Holdings | Innodata vs. International Business Machines |
| Wilhelmina vs. Performant Financial | Wilhelmina vs. Network 1 Technologies | Wilhelmina vs. Rentokil Initial PLC | Wilhelmina vs. Mader Group Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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