Correlation Between Glory Star and Innovid Corp

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

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

Diversification Opportunities for Glory Star and Innovid Corp

-0.01

Correlation Coefficient

Glory Star  Innovid Corp

Good diversification

The 3 months correlation between Glory and Innovid is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Glory Star New and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and Glory Star 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 Glory Star New 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 Glory Star i.e., Glory Star and Innovid Corp go up and down completely randomly.

Pair Corralation between Glory Star and Innovid Corp

Assuming the 90 days horizon Glory Star New is expected to generate 1.7 times more return on investment than Innovid Corp. However, Glory Star is 1.7 times more volatile than Innovid Corp. It trades about 0.09 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.12 per unit of risk. If you would invest  0.11  in Glory Star New on October 6, 2024 and sell it today you would lose (0.01) from holding Glory Star New or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	60.98%
Values	Daily Returns

Glory Star New  vs.  Innovid Corp

Glory Star New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Glory Star New has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly fragile technical and fundamental indicators, Glory Star may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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.

Pair Trading with Glory Star and Innovid Corp

The main advantage of trading using opposite Glory Star and Innovid Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glory Star 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 Glory Star New 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.