Correlation Between Clear Channel and Integral
Can any of the company-specific risk be diversified away by investing in both Clear Channel 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 Clear Channel and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clear Channel Outdoor and Integral Ad Science, you can compare the effects of market volatilities on Clear Channel 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 Clear Channel with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clear Channel and Integral.
Diversification Opportunities for Clear Channel and Integral
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Clear and Integral is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Clear Channel Outdoor 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 Clear Channel 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 Clear Channel Outdoor 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 Clear Channel i.e., Clear Channel and Integral go up and down completely randomly.
Pair Corralation between Clear Channel and Integral
Considering the 90-day investment horizon Clear Channel Outdoor is expected to generate 1.12 times more return on investment than Integral. However, Clear Channel is 1.12 times more volatile than Integral Ad Science. It trades about 0.06 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.01 per unit of risk. If you would invest 146.00 in Clear Channel Outdoor on August 28, 2024 and sell it today you would earn a total of 13.00 from holding Clear Channel Outdoor or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clear Channel Outdoor vs. Integral Ad Science
Performance |
| Timeline |
| Clear Channel Outdoor |
| Integral Ad Science |
Clear Channel and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clear Channel and Integral
The main advantage of trading using opposite Clear Channel and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Channel 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.| Clear Channel vs. Mirriad Advertising plc | Clear Channel vs. INEO Tech Corp | Clear Channel vs. Innovid Corp | Clear Channel vs. Townsquare Media |
| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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