Correlation Between GDEV INC and Innovid Corp

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

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

Diversification Opportunities for GDEV INC and Innovid Corp

-0.69

Correlation Coefficient

GDEV INC  Innovid Corp

Excellent diversification

The 3 months correlation between GDEV and Innovid is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding GDEV INC and Innovid Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innovid Corp and GDEV INC 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 GDEV INC are associated (or correlated) with Innovid Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innovid Corp has no effect on the direction of GDEV INC i.e., GDEV INC and Innovid Corp go up and down completely randomly.

Pair Corralation between GDEV INC and Innovid Corp

Assuming the 90 days horizon GDEV INC is expected to generate 7.27 times more return on investment than Innovid Corp. However, GDEV INC is 7.27 times more volatile than Innovid Corp. It trades about 0.06 of its potential returns per unit of risk. Innovid Corp is currently generating about 0.01 per unit of risk. If you would invest  71.00  in GDEV INC on February 16, 2024 and sell it today you would lose (64.00) from holding GDEV INC or give up 90.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	63.88%
Values	Daily Returns

GDEV INC  vs.  Innovid Corp

GDEV INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GDEV INC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, GDEV INC is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Innovid Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Innovid Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Innovid Corp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with GDEV INC and Innovid Corp

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

The idea behind GDEV INC and Innovid 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.

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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.