Correlation Between Innodata and Evertec

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

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

Diversification Opportunities for Innodata and Evertec

0.0

Correlation Coefficient

Innodata  Evertec

Pay attention - limited upside

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

Pair Corralation between Innodata and Evertec

If you would invest  3,825  in Innodata on August 26, 2025 and sell it today you would earn a total of  1,868  from holding Innodata or generate 48.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Innodata  vs.  Evertec

Innodata

Risk-Adjusted Performance

Good

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

Evertec

Risk-Adjusted Performance

Weakest

Over the last 90 days Evertec 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 rather sound which may send shares a bit higher in December 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Innodata and Evertec

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

The idea behind Innodata and Evertec 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.