Correlation Between Innoviz Technologies and Joby Aviation
Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies and Joby Aviation 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 Joby Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Innoviz Technologies and Joby Aviation, you can compare the effects of market volatilities on Innoviz Technologies and Joby Aviation 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 Joby Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and Joby Aviation.
Diversification Opportunities for Innoviz Technologies and Joby Aviation
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Innoviz and Joby is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Joby Aviation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Joby Aviation 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 Joby Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Joby Aviation has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Joby Aviation go up and down completely randomly.
Pair Corralation between Innoviz Technologies and Joby Aviation
Assuming the 90 days horizon Innoviz Technologies is expected to under-perform the Joby Aviation. In addition to that, Innoviz Technologies is 1.03 times more volatile than Joby Aviation. It trades about -0.06 of its total potential returns per unit of risk. Joby Aviation is currently generating about 0.06 per unit of volatility. If you would invest 202.00 in Joby Aviation on November 1, 2024 and sell it today you would earn a total of 8.00 from holding Joby Aviation or generate 3.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Innoviz Technologies vs. Joby Aviation
Performance |
| Timeline |
| Innoviz Technologies |
| Joby Aviation |
Innoviz Technologies and Joby Aviation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Innoviz Technologies and Joby Aviation
The main advantage of trading using opposite Innoviz Technologies and Joby Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies position performs unexpectedly, Joby Aviation 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 Joby Aviation will offset losses from the drop in Joby Aviation's long position.| Innoviz Technologies vs. Aeva Technologies, WT | Innoviz Technologies vs. Innoviz Technologies | Innoviz Technologies vs. EVgo Equity Warrants |
| Joby Aviation vs. Archer Aviation WT | Joby Aviation vs. Blade Air Mobility | Joby Aviation vs. BKSY WT | Joby Aviation vs. Paysafe Ltd Wt |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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