Correlation Between Marchex and Innovid Corp
Can any of the company-specific risk be diversified away by investing in both Marchex 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 Marchex and Innovid Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marchex and Innovid Corp, you can compare the effects of market volatilities on Marchex 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 Marchex with a short position of Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marchex and Innovid Corp.
Diversification Opportunities for Marchex and Innovid Corp
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Marchex and Innovid is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Marchex and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Marchex 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 Marchex 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 Marchex i.e., Marchex and Innovid Corp go up and down completely randomly.
Pair Corralation between Marchex and Innovid Corp
Given the investment horizon of 90 days Marchex is expected to generate 32.52 times less return on investment than Innovid Corp. But when comparing it to its historical volatility, Marchex is 4.89 times less risky than Innovid Corp. It trades about 0.03 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 196.00 in Innovid Corp on August 27, 2024 and sell it today you would earn a total of 109.00 from holding Innovid Corp or generate 55.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marchex vs. Innovid Corp
Performance |
| Timeline |
| Marchex |
| Innovid Corp |
Marchex and Innovid Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marchex and Innovid Corp
The main advantage of trading using opposite Marchex and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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.| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
| 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 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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