Correlation Between Innoviz Technologies and Stellantis
Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies and Stellantis 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 Innoviz Technologies and Stellantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innoviz Technologies and Stellantis NV, you can compare the effects of market volatilities on Innoviz Technologies and Stellantis 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 Innoviz Technologies with a short position of Stellantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and Stellantis.
Diversification Opportunities for Innoviz Technologies and Stellantis
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Innoviz and Stellantis is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Stellantis NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stellantis NV and Innoviz 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 Innoviz Technologies are associated (or correlated) with Stellantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stellantis NV has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Stellantis go up and down completely randomly.
Pair Corralation between Innoviz Technologies and Stellantis
Given the investment horizon of 90 days Innoviz Technologies is expected to under-perform the Stellantis. In addition to that, Innoviz Technologies is 3.87 times more volatile than Stellantis NV. It trades about -0.06 of its total potential returns per unit of risk. Stellantis NV is currently generating about 0.04 per unit of volatility. If you would invest 1,277 in Stellantis NV on November 9, 2024 and sell it today you would earn a total of 17.00 from holding Stellantis NV or generate 1.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innoviz Technologies vs. Stellantis NV
Performance |
| Timeline |
| Innoviz Technologies |
| Stellantis NV |
Innoviz Technologies and Stellantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innoviz Technologies and Stellantis
The main advantage of trading using opposite Innoviz Technologies and Stellantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies position performs unexpectedly, Stellantis 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 Stellantis will offset losses from the drop in Stellantis' long position.| Innoviz Technologies vs. Aeye Inc | Innoviz Technologies vs. Luminar Technologies | Innoviz Technologies vs. Hesai Group American | Innoviz Technologies vs. Mobileye Global Class |
| Stellantis vs. Porsche Automobile Holding | Stellantis vs. Toyota Motor | Stellantis vs. Honda Motor Co | Stellantis vs. General Motors |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |