Correlation Between Innodata and Intellinetics

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

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

Diversification Opportunities for Innodata and Intellinetics

0.19

Correlation Coefficient

Innodata  Intellinetics

Average diversification

The 3 months correlation between Innodata and Intellinetics is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Innodata and Intellinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellinetics 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 Intellinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellinetics has no effect on the direction of Innodata i.e., Innodata and Intellinetics go up and down completely randomly.

Pair Corralation between Innodata and Intellinetics

Given the investment horizon of 90 days Innodata is expected to generate 1.5 times more return on investment than Intellinetics. However, Innodata is 1.5 times more volatile than Intellinetics. It trades about 0.18 of its potential returns per unit of risk. Intellinetics is currently generating about -0.04 per unit of risk. If you would invest  4,985  in Innodata on July 16, 2025 and sell it today you would earn a total of  3,183  from holding Innodata or generate 63.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Innodata  vs.  Intellinetics

Innodata

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Innodata are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Innodata exhibited solid returns over the last few months and may actually be approaching a breakup point.

Intellinetics

Risk-Adjusted Performance

Weakest

Over the last 90 days Intellinetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Innodata and Intellinetics

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

The idea behind Innodata and Intellinetics 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.