Correlation Between 4imprint Group and Inuvo

Can any of the company-specific risk be diversified away by investing in both 4imprint Group and Inuvo 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 4imprint Group and Inuvo into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 4imprint Group plc and Inuvo Inc, you can compare the effects of market volatilities on 4imprint Group and Inuvo 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 4imprint Group with a short position of Inuvo. Check out your portfolio center. Please also check ongoing floating volatility patterns of 4imprint Group and Inuvo.

Diversification Opportunities for 4imprint Group and Inuvo

-0.57

Correlation Coefficient

4imprint Group  Inuvo

Excellent diversification

The 3 months correlation between 4imprint and Inuvo is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding 4imprint Group plc and Inuvo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inuvo Inc and 4imprint Group 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 4imprint Group plc are associated (or correlated) with Inuvo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inuvo Inc has no effect on the direction of 4imprint Group i.e., 4imprint Group and Inuvo go up and down completely randomly.

Pair Corralation between 4imprint Group and Inuvo

Assuming the 90 days horizon 4imprint Group plc is expected to generate 0.18 times more return on investment than Inuvo. However, 4imprint Group plc is 5.57 times less risky than Inuvo. It trades about 0.14 of its potential returns per unit of risk. Inuvo Inc is currently generating about 0.01 per unit of risk. If you would invest  6,409  in 4imprint Group plc on December 26, 2024 and sell it today you would earn a total of  724.00  from holding 4imprint Group plc or generate 11.3% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

4imprint Group plc  vs.  Inuvo Inc

4imprint Group plc

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 4imprint Group plc are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly abnormal technical and fundamental indicators, 4imprint Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Inuvo Inc

Risk-Adjusted Performance

Weak

Over the last 90 days Inuvo Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Inuvo is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with 4imprint Group and Inuvo

The main advantage of trading using opposite 4imprint Group and Inuvo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 4imprint Group position performs unexpectedly, Inuvo 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 Inuvo will offset losses from the drop in Inuvo's long position.

The idea behind 4imprint Group plc and Inuvo Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.