Correlation Between Innoviz Technologies and Cooper Stnd

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

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

Diversification Opportunities for Innoviz Technologies and Cooper Stnd

-0.44

Correlation Coefficient

Innoviz Technologies  Cooper Stnd

Very good diversification

The 3 months correlation between Innoviz and Cooper is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Innoviz Technologies and Cooper Stnd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cooper Stnd 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 Cooper Stnd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cooper Stnd has no effect on the direction of Innoviz Technologies i.e., Innoviz Technologies and Cooper Stnd go up and down completely randomly.

Pair Corralation between Innoviz Technologies and Cooper Stnd

Given the investment horizon of 90 days Innoviz Technologies is expected to generate 1.68 times more return on investment than Cooper Stnd. However, Innoviz Technologies is 1.68 times more volatile than Cooper Stnd. It trades about 0.07 of its potential returns per unit of risk. Cooper Stnd is currently generating about 0.07 per unit of risk. If you would invest  79.00  in Innoviz Technologies on September 13, 2024 and sell it today you would earn a total of  13.66  from holding Innoviz Technologies or generate 17.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Innoviz Technologies  vs.  Cooper Stnd

Innoviz Technologies

Risk-Adjusted Performance

5 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Innoviz Technologies are ranked lower than 5 (%) 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.

Cooper Stnd

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Cooper Stnd are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Cooper Stnd unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Innoviz Technologies and Cooper Stnd

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

The idea behind Innoviz Technologies and Cooper Stnd 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.