Correlation Between Moadata and Innometry

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

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

Diversification Opportunities for Moadata and Innometry

-0.77

Correlation Coefficient

Moadata  Innometry

Pay attention - limited upside

The 3 months correlation between Moadata and Innometry is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Moadata Co and Innometry Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innometry and Moadata 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 Moadata Co are associated (or correlated) with Innometry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innometry has no effect on the direction of Moadata i.e., Moadata and Innometry go up and down completely randomly.

Pair Corralation between Moadata and Innometry

Assuming the 90 days trading horizon Moadata Co is expected to under-perform the Innometry. But the stock apears to be less risky and, when comparing its historical volatility, Moadata Co is 2.17 times less risky than Innometry. The stock trades about -0.11 of its potential returns per unit of risk. The Innometry Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  733,000  in Innometry Co on December 25, 2024 and sell it today you would earn a total of  307,000  from holding Innometry Co or generate 41.88% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Moadata Co  vs.  Innometry Co

Moadata

Risk-Adjusted Performance

Very Weak

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

Innometry

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innometry Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Innometry sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Moadata and Innometry

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

The idea behind Moadata Co and Innometry Co 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 CEOs Directory module to screen CEOs from public companies around the world.