Correlation Between STRAN PANY and Innovid Corp
Can any of the company-specific risk be diversified away by investing in both STRAN PANY 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 STRAN PANY and Innovid Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STRAN PANY INC and Innovid Corp, you can compare the effects of market volatilities on STRAN PANY 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 STRAN PANY with a short position of Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of STRAN PANY and Innovid Corp.
Diversification Opportunities for STRAN PANY and Innovid Corp
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between STRAN and Innovid is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding STRAN PANY INC and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and STRAN PANY 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 STRAN PANY INC 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 STRAN PANY i.e., STRAN PANY and Innovid Corp go up and down completely randomly.
Pair Corralation between STRAN PANY and Innovid Corp
Assuming the 90 days horizon STRAN PANY INC is expected to generate 29.29 times more return on investment than Innovid Corp. However, STRAN PANY is 29.29 times more volatile than Innovid Corp. It trades about 0.2 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.07 per unit of risk. If you would invest 6.40 in STRAN PANY INC on September 4, 2024 and sell it today you would lose (3.40) from holding STRAN PANY INC or give up 53.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 21.86% |
| Values | Daily Returns |
STRAN PANY INC vs. Innovid Corp
Performance |
| Timeline |
| STRAN PANY INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Innovid Corp |
STRAN PANY and Innovid Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STRAN PANY and Innovid Corp
The main advantage of trading using opposite STRAN PANY and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STRAN PANY 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.| STRAN PANY vs. Weibo Corp | STRAN PANY vs. Kandi Technologies Group | STRAN PANY vs. Summit Materials | STRAN PANY vs. Apogee Enterprises |
| 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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