Correlation Between Innoviz Technologies and Planet 13

Can any of the company-specific risk be diversified away by investing in both Innoviz Technologies and Planet 13 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 Planet 13 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Innoviz Technologies and Planet 13 Holdings, you can compare the effects of market volatilities on Innoviz Technologies and Planet 13 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 Planet 13. Check out your portfolio center. Please also check ongoing floating volatility patterns of Innoviz Technologies and Planet 13.

Diversification Opportunities for Innoviz Technologies and Planet 13

-0.38

Correlation Coefficient

Innoviz Technologies  Planet 13

Very good diversification

The 3 months correlation between Innoviz and Planet is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Planet 13 Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Planet 13 Holdings 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 Planet 13. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Planet 13 Holdings has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Planet 13 go up and down completely randomly.

Pair Corralation between Innoviz Technologies and Planet 13

Given the investment horizon of 90 days Innoviz Technologies is expected to generate 1.03 times more return on investment than Planet 13. However, Innoviz Technologies is 1.03 times more volatile than Planet 13 Holdings. It trades about -0.01 of its potential returns per unit of risk. Planet 13 Holdings is currently generating about -0.02 per unit of risk. If you would invest  481.00  in Innoviz Technologies on October 3, 2024 and sell it today you would lose (313.00) from holding Innoviz Technologies or give up 65.07% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.46%
Values	Daily Returns

Innoviz Technologies  vs.  Planet 13 Holdings

Innoviz Technologies

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Innoviz Technologies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Innoviz Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Planet 13 Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Planet 13 Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Innoviz Technologies and Planet 13

The main advantage of trading using opposite Innoviz Technologies and Planet 13 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Innoviz Technologies position performs unexpectedly, Planet 13 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 Planet 13 will offset losses from the drop in Planet 13's long position.

The idea behind Innoviz Technologies and Planet 13 Holdings 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.

Check out your portfolio center.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.