Correlation Between Service Team and Innoviz Technologies

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

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

Diversification Opportunities for Service Team and Innoviz Technologies

0.0

Correlation Coefficient

Service Team  Innoviz Technologies

Pay attention - limited upside

The 3 months correlation between Service and Innoviz is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Service Team and Innoviz Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innoviz Technologies and Service Team 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 Service Team are associated (or correlated) with Innoviz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innoviz Technologies has no effect on the direction of Service Team i.e., Service Team and Innoviz Technologies go up and down completely randomly.

Pair Corralation between Service Team and Innoviz Technologies

If you would invest  0.01  in Service Team on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Service Team or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Service Team  vs.  Innoviz Technologies

Service Team

Risk-Adjusted Performance

Very Weak

Over the last 90 days Service Team has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Service Team is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Innoviz Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Innoviz Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Service Team and Innoviz Technologies

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

The idea behind Service Team and Innoviz Technologies 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.