Correlation Between Boston Omaha and Innovid Corp

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

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

Diversification Opportunities for Boston Omaha and Innovid Corp

0.26

Correlation Coefficient

Boston Omaha  Innovid Corp

Modest diversification

The 3 months correlation between Boston and Innovid is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Boston Omaha 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 Boston Omaha Corp 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 Boston Omaha i.e., Boston Omaha and Innovid Corp go up and down completely randomly.

Pair Corralation between Boston Omaha and Innovid Corp

Considering the 90-day investment horizon Boston Omaha is expected to generate 39.21 times less return on investment than Innovid Corp. But when comparing it to its historical volatility, Boston Omaha Corp is 12.29 times less risky than Innovid Corp. It trades about 0.07 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  168.00  in Innovid Corp on September 18, 2024 and sell it today you would earn a total of  138.00  from holding Innovid Corp or generate 82.14% return on investment over 90 days.

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

Boston Omaha Corp  vs.  Innovid Corp

Boston Omaha Corp

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days Boston Omaha Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Boston Omaha is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Innovid Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innovid Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Innovid Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Boston Omaha and Innovid Corp

The main advantage of trading using opposite Boston Omaha and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha 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 Boston Omaha Corp 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.