Correlation Between InnerWorkings and IClick Interactive

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

By analyzing existing cross correlation between InnerWorkings and iClick Interactive Asia, you can compare the effects of market volatilities on InnerWorkings and IClick Interactive 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 InnerWorkings with a short position of IClick Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of InnerWorkings and IClick Interactive.

Diversification Opportunities for InnerWorkings and IClick Interactive

0.0

Correlation Coefficient

InnerWorkings  IClick Interactive

Pay attention - limited upside

The 3 months correlation between InnerWorkings and IClick is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding InnerWorkings and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia and InnerWorkings 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 InnerWorkings are associated (or correlated) with IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of InnerWorkings i.e., InnerWorkings and IClick Interactive go up and down completely randomly.

Pair Corralation between InnerWorkings and IClick Interactive

If you would invest (100.00) in InnerWorkings on January 29, 2024 and sell it today you would earn a total of  100.00  from holding InnerWorkings or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

InnerWorkings  vs.  iClick Interactive Asia

InnerWorkings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days InnerWorkings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, InnerWorkings is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

iClick Interactive Asia

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days iClick Interactive Asia has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with InnerWorkings and IClick Interactive

The main advantage of trading using opposite InnerWorkings and IClick Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InnerWorkings position performs unexpectedly, IClick Interactive 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 IClick Interactive will offset losses from the drop in IClick Interactive's long position.

The idea behind InnerWorkings and iClick Interactive Asia 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.