Correlation Between Oneconnect Financial and Innodata
Can any of the company-specific risk be diversified away by investing in both Oneconnect Financial and Innodata 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 Oneconnect Financial and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oneconnect Financial Technology and Innodata, you can compare the effects of market volatilities on Oneconnect Financial and Innodata 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 Oneconnect Financial with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oneconnect Financial and Innodata.
Diversification Opportunities for Oneconnect Financial and Innodata
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Oneconnect and Innodata is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Oneconnect Financial Technolog and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Oneconnect Financial 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 Oneconnect Financial Technology are associated (or correlated) with Innodata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodata has no effect on the direction of Oneconnect Financial i.e., Oneconnect Financial and Innodata go up and down completely randomly.
Pair Corralation between Oneconnect Financial and Innodata
Given the investment horizon of 90 days Oneconnect Financial Technology is expected to generate 0.86 times more return on investment than Innodata. However, Oneconnect Financial Technology is 1.16 times less risky than Innodata. It trades about 0.14 of its potential returns per unit of risk. Innodata is currently generating about -0.05 per unit of risk. If you would invest 215.00 in Oneconnect Financial Technology on September 19, 2024 and sell it today you would earn a total of 30.00 from holding Oneconnect Financial Technology or generate 13.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oneconnect Financial Technolog vs. Innodata
Performance |
| Timeline |
| Oneconnect Financial |
| Innodata |
Oneconnect Financial and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oneconnect Financial and Innodata
The main advantage of trading using opposite Oneconnect Financial and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oneconnect Financial position performs unexpectedly, Innodata 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 Innodata will offset losses from the drop in Innodata's long position.| Oneconnect Financial vs. Swvl Holdings Corp | Oneconnect Financial vs. Guardforce AI Co | Oneconnect Financial vs. Thayer Ventures Acquisition |
| Innodata vs. Oneconnect Financial Technology | Innodata vs. Global Business Travel | Innodata vs. Alight Inc | Innodata vs. CS Disco LLC |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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