Correlation Between Innoviz Technologies and Copperbank Resources

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

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

Diversification Opportunities for Innoviz Technologies and Copperbank Resources

-0.51

Correlation Coefficient

Innoviz Technologies  Copperbank Resources

Excellent diversification

The 3 months correlation between Innoviz and Copperbank is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Copperbank Resources Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Copperbank Resources Corp and Innoviz Technologies 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 Innoviz Technologies are associated (or correlated) with Copperbank Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Copperbank Resources Corp has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Copperbank Resources go up and down completely randomly.

Pair Corralation between Innoviz Technologies and Copperbank Resources

Given the investment horizon of 90 days Innoviz Technologies is expected to generate 3.13 times more return on investment than Copperbank Resources. However, Innoviz Technologies is 3.13 times more volatile than Copperbank Resources Corp. It trades about 0.41 of its potential returns per unit of risk. Copperbank Resources Corp is currently generating about -0.23 per unit of risk. If you would invest  53.00  in Innoviz Technologies on September 23, 2024 and sell it today you would earn a total of  62.00  from holding Innoviz Technologies or generate 116.98% return on investment over 90 days.

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

Innoviz Technologies  vs.  Copperbank Resources Corp

Innoviz Technologies

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innoviz Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Innoviz Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Copperbank Resources Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Copperbank Resources Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward-looking signals, Copperbank Resources is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Innoviz Technologies and Copperbank Resources

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

The idea behind Innoviz Technologies and Copperbank Resources 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.