Correlation Between SB Technology and Innodata
Can any of the company-specific risk be diversified away by investing in both SB Technology 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 SB Technology and Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SB Technology Corp and Innodata, you can compare the effects of market volatilities on SB Technology 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 SB Technology with a short position of Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of SB Technology and Innodata.
Diversification Opportunities for SB Technology and Innodata
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SFBTF and Innodata is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SB Technology Corp and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and SB Technology 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 SB Technology Corp 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 SB Technology i.e., SB Technology and Innodata go up and down completely randomly.
Pair Corralation between SB Technology and Innodata
If you would invest 2,049 in Innodata on August 27, 2024 and sell it today you would earn a total of 2,428 from holding Innodata or generate 118.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
SB Technology Corp vs. Innodata
Performance |
| Timeline |
| SB Technology Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innodata |
SB Technology and Innodata Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SB Technology and Innodata
The main advantage of trading using opposite SB Technology and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SB Technology 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.| SB Technology vs. CLPS Inc | SB Technology vs. Xalles Holdings | SB Technology vs. SEATech Ventures Corp | SB Technology vs. Soluna Holdings |
| Innodata vs. ASGN Inc | Innodata vs. Formula Systems 1985 | Innodata vs. FiscalNote Holdings | Innodata vs. International Business Machines |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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