Correlation Between Innoviz Technologies and Ebang International

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

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

Diversification Opportunities for Innoviz Technologies and Ebang International

-0.51

Correlation Coefficient

Innoviz Technologies  Ebang International

Excellent diversification

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

Pair Corralation between Innoviz Technologies and Ebang International

Assuming the 90 days horizon Innoviz Technologies is expected to generate 22.63 times more return on investment than Ebang International. However, Innoviz Technologies is 22.63 times more volatile than Ebang International Holdings. It trades about 0.15 of its potential returns per unit of risk. Ebang International Holdings is currently generating about 0.1 per unit of risk. If you would invest  0.00  in Innoviz Technologies on September 4, 2024 and sell it today you would earn a total of  9.39  from holding Innoviz Technologies or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	84.38%
Values	Daily Returns

Innoviz Technologies  vs.  Ebang International Holdings

Innoviz Technologies

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Innoviz Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Innoviz Technologies showed solid returns over the last few months and may actually be approaching a breakup point.

Ebang International

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ebang International Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ebang International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Innoviz Technologies and Ebang International

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

The idea behind Innoviz Technologies and Ebang International 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.

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..