Correlation Between Innovid Corp and GBX International

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

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

Diversification Opportunities for Innovid Corp and GBX International

0.0

Correlation Coefficient

Innovid Corp  GBX International

Pay attention - limited upside

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

Pair Corralation between Innovid Corp and GBX International

If you would invest  171.00  in Innovid Corp on October 5, 2024 and sell it today you would earn a total of  132.00  from holding Innovid Corp or generate 77.19% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.64%
Values	Daily Returns

Innovid Corp  vs.  GBX International Group

Innovid Corp

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innovid Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Innovid Corp showed solid returns over the last few months and may actually be approaching a breakup point.

GBX International

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days GBX International Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, GBX International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Innovid Corp and GBX International

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

The idea behind Innovid Corp and GBX International Group 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.