Correlation Between Interpublic Group and Innovid Corp
Can any of the company-specific risk be diversified away by investing in both Interpublic Group and Innovid Corp 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 Interpublic Group and Innovid Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interpublic Group of and Innovid Corp, you can compare the effects of market volatilities on Interpublic Group and Innovid Corp 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 Interpublic Group with a short position of Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interpublic Group and Innovid Corp.
Diversification Opportunities for Interpublic Group and Innovid Corp
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Interpublic and Innovid is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Interpublic Group of and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Interpublic Group 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 Interpublic Group of are associated (or correlated) with Innovid Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovid Corp has no effect on the direction of Interpublic Group i.e., Interpublic Group and Innovid Corp go up and down completely randomly.
Pair Corralation between Interpublic Group and Innovid Corp
Considering the 90-day investment horizon Interpublic Group is expected to generate 12.63 times less return on investment than Innovid Corp. But when comparing it to its historical volatility, Interpublic Group of is 3.98 times less risky than Innovid Corp. It trades about 0.01 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 240.00 in Innovid Corp on August 28, 2024 and sell it today you would earn a total of 65.00 from holding Innovid Corp or generate 27.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interpublic Group of vs. Innovid Corp
Performance |
| Timeline |
| Interpublic Group |
| Innovid Corp |
Interpublic Group and Innovid Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interpublic Group and Innovid Corp
The main advantage of trading using opposite Interpublic Group and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interpublic Group position performs unexpectedly, Innovid Corp 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 Innovid Corp will offset losses from the drop in Innovid Corp's long position.| Interpublic Group vs. Ziff Davis | Interpublic Group vs. Criteo Sa | Interpublic Group vs. WPP PLC ADR | Interpublic Group vs. Integral Ad Science |
| Innovid Corp vs. ADTRAN Inc | Innovid Corp vs. Belden Inc | Innovid Corp vs. ADC Therapeutics SA | Innovid Corp vs. Comtech Telecommunications Corp |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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