Correlation Between Inuvo and Smart Digital
Can any of the company-specific risk be diversified away by investing in both Inuvo and Smart Digital 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 Inuvo and Smart Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inuvo Inc and Smart Digital Group, you can compare the effects of market volatilities on Inuvo and Smart Digital 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 Inuvo with a short position of Smart Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inuvo and Smart Digital.
Diversification Opportunities for Inuvo and Smart Digital
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Inuvo and Smart is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Inuvo Inc and Smart Digital Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Digital Group and Inuvo 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 Inuvo Inc are associated (or correlated) with Smart Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Digital Group has no effect on the direction of Inuvo i.e., Inuvo and Smart Digital go up and down completely randomly.
Pair Corralation between Inuvo and Smart Digital
Given the investment horizon of 90 days Inuvo Inc is expected to generate 0.36 times more return on investment than Smart Digital. However, Inuvo Inc is 2.81 times less risky than Smart Digital. It trades about -0.1 of its potential returns per unit of risk. Smart Digital Group is currently generating about -0.1 per unit of risk. If you would invest 348.00 in Inuvo Inc on August 24, 2025 and sell it today you would lose (100.00) from holding Inuvo Inc or give up 28.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inuvo Inc vs. Smart Digital Group
Performance |
| Timeline |
| Inuvo Inc |
| Smart Digital Group |
Inuvo and Smart Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inuvo and Smart Digital
The main advantage of trading using opposite Inuvo and Smart Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inuvo position performs unexpectedly, Smart Digital 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 Smart Digital will offset losses from the drop in Smart Digital's long position.The idea behind Inuvo Inc and Smart Digital Group 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.| Smart Digital vs. Able View Global | Smart Digital vs. Inuvo Inc | Smart Digital vs. Thumzup Media | Smart Digital vs. Fluent Inc |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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