Correlation Between Innventure, and Newtek Business

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

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

Diversification Opportunities for Innventure, and Newtek Business

-0.52

Correlation Coefficient

Innventure,  Newtek Business

Excellent diversification

The 3 months correlation between Innventure, and Newtek is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Innventure, and Newtek Business Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newtek Business Services and Innventure, 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 Innventure, are associated (or correlated) with Newtek Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newtek Business Services has no effect on the direction of Innventure, i.e., Innventure, and Newtek Business go up and down completely randomly.

Pair Corralation between Innventure, and Newtek Business

Considering the 90-day investment horizon Innventure, is expected to under-perform the Newtek Business. In addition to that, Innventure, is 8.07 times more volatile than Newtek Business Services. It trades about -0.16 of its total potential returns per unit of risk. Newtek Business Services is currently generating about 0.07 per unit of volatility. If you would invest  2,436  in Newtek Business Services on December 23, 2024 and sell it today you would earn a total of  60.00  from holding Newtek Business Services or generate 2.46% return on investment over 90 days.

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

Innventure,  vs.  Newtek Business Services

Innventure,

Risk-Adjusted Performance

Very Weak

Over the last 90 days Innventure, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Newtek Business Services

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Newtek Business Services are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Newtek Business is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Innventure, and Newtek Business

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

The idea behind Innventure, and Newtek Business Services 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..