Correlation Between Advantage Solutions and Integral
Can any of the company-specific risk be diversified away by investing in both Advantage Solutions and Integral 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 Advantage Solutions and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advantage Solutions and Integral Ad Science, you can compare the effects of market volatilities on Advantage Solutions and Integral 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 Advantage Solutions with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advantage Solutions and Integral.
Diversification Opportunities for Advantage Solutions and Integral
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Advantage and Integral is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Advantage Solutions and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Advantage Solutions 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 Advantage Solutions are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Advantage Solutions i.e., Advantage Solutions and Integral go up and down completely randomly.
Pair Corralation between Advantage Solutions and Integral
Considering the 90-day investment horizon Advantage Solutions is expected to under-perform the Integral. In addition to that, Advantage Solutions is 1.74 times more volatile than Integral Ad Science. It trades about -0.06 of its total potential returns per unit of risk. Integral Ad Science is currently generating about 0.0 per unit of volatility. If you would invest 1,058 in Integral Ad Science on November 3, 2024 and sell it today you would lose (7.50) from holding Integral Ad Science or give up 0.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advantage Solutions vs. Integral Ad Science
Performance |
| Timeline |
| Advantage Solutions |
| Integral Ad Science |
Advantage Solutions and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advantage Solutions and Integral
The main advantage of trading using opposite Advantage Solutions and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advantage Solutions position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Advantage Solutions vs. Criteo Sa | Advantage Solutions vs. Deluxe | Advantage Solutions vs. Emerald Expositions Events | Advantage Solutions vs. Marchex |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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