Correlation Between Yext and Informatica

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Can any of the company-specific risk be diversified away by investing in both Yext and Informatica 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 Yext and Informatica into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yext Inc and Informatica, you can compare the effects of market volatilities on Yext and Informatica 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 Yext with a short position of Informatica. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yext and Informatica.

Diversification Opportunities for Yext and Informatica

0.19
  Correlation Coefficient

Average diversification

The 3 months correlation between Yext and Informatica is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Yext Inc and Informatica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Informatica and Yext 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 Yext Inc are associated (or correlated) with Informatica. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Informatica has no effect on the direction of Yext i.e., Yext and Informatica go up and down completely randomly.

Pair Corralation between Yext and Informatica

Given the investment horizon of 90 days Yext Inc is expected to generate 0.38 times more return on investment than Informatica. However, Yext Inc is 2.66 times less risky than Informatica. It trades about 0.15 of its potential returns per unit of risk. Informatica is currently generating about -0.17 per unit of risk. If you would invest  633.00  in Yext Inc on November 18, 2024 and sell it today you would earn a total of  35.00  from holding Yext Inc or generate 5.53% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Yext Inc  vs.  Informatica

 Performance 
       Timeline  
Yext Inc 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Yext Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.
Informatica 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Informatica has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's technical and fundamental indicators remain somewhat strong which may send shares a bit higher in March 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Yext and Informatica Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Yext and Informatica

The main advantage of trading using opposite Yext and Informatica positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yext position performs unexpectedly, Informatica 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 Informatica will offset losses from the drop in Informatica's long position.
The idea behind Yext Inc and Informatica pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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