Correlation Between Dun Bradstreet and Innodata

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

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

Diversification Opportunities for Dun Bradstreet and Innodata

0.71

Correlation Coefficient

Dun Bradstreet  Innodata

Poor diversification

The 3 months correlation between Dun and Innodata is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Dun Bradstreet Holdings and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata and Dun Bradstreet 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 Dun Bradstreet Holdings are associated (or correlated) with Innodata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodata has no effect on the direction of Dun Bradstreet i.e., Dun Bradstreet and Innodata go up and down completely randomly.

Pair Corralation between Dun Bradstreet and Innodata

If you would invest  915.00  in Dun Bradstreet Holdings on August 4, 2025 and sell it today you would earn a total of  0.00  from holding Dun Bradstreet Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	4.55%
Values	Daily Returns

Dun Bradstreet Holdings  vs.  Innodata

Dun Bradstreet Holdings

Risk-Adjusted Performance

Solid

Over the last 90 days Dun Bradstreet Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Dun Bradstreet is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Innodata

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Innodata are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Innodata exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dun Bradstreet and Innodata

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

The idea behind Dun Bradstreet Holdings and Innodata 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.