Correlation Between Nexters Warrant and Innovid Corp

Can any of the company-specific risk be diversified away by investing in both Nexters Warrant 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 Nexters Warrant and Innovid Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nexters Warrant and Innovid Corp, you can compare the effects of market volatilities on Nexters Warrant 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 Nexters Warrant with a short position of Innovid Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexters Warrant and Innovid Corp.

Diversification Opportunities for Nexters Warrant and Innovid Corp

0.25

Correlation Coefficient

Nexters Warrant  Innovid Corp

Modest diversification

The 3 months correlation between Nexters and Innovid is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Nexters Warrant and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Nexters Warrant 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 Nexters Warrant 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 Nexters Warrant i.e., Nexters Warrant and Innovid Corp go up and down completely randomly.

Pair Corralation between Nexters Warrant and Innovid Corp

Assuming the 90 days horizon Nexters Warrant is expected to under-perform the Innovid Corp. In addition to that, Nexters Warrant is 2.86 times more volatile than Innovid Corp. It trades about -0.58 of its total potential returns per unit of risk. Innovid Corp is currently generating about -0.06 per unit of volatility. If you would invest  241.00  in Innovid Corp on March 12, 2024 and sell it today you would lose (32.00) from holding Innovid Corp or give up 13.28% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	7.14%
Values	Daily Returns

Nexters Warrant  vs.  Innovid Corp

Nexters Warrant

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nexters Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in July 2024. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Innovid Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Innovid Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Innovid Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nexters Warrant and Innovid Corp

The main advantage of trading using opposite Nexters Warrant and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexters Warrant 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.

The idea behind Nexters Warrant and Innovid Corp 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..