Correlation Between Integral and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Integral and Canlan Ice 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 Integral and Canlan Ice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Canlan Ice Sports, you can compare the effects of market volatilities on Integral and Canlan Ice 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 Integral with a short position of Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Canlan Ice.
Diversification Opportunities for Integral and Canlan Ice
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integral and Canlan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports and Integral 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 Integral Ad Science are associated (or correlated) with Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Integral i.e., Integral and Canlan Ice go up and down completely randomly.
Pair Corralation between Integral and Canlan Ice
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Canlan Ice. In addition to that, Integral is 32.97 times more volatile than Canlan Ice Sports. It trades about -0.02 of its total potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.14 per unit of volatility. If you would invest 281.00 in Canlan Ice Sports on August 31, 2024 and sell it today you would earn a total of 16.00 from holding Canlan Ice Sports or generate 5.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Integral Ad Science vs. Canlan Ice Sports
Performance |
| Timeline |
| Integral Ad Science |
| Canlan Ice Sports |
Integral and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Canlan Ice
The main advantage of trading using opposite Integral and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.The idea behind Integral Ad Science and Canlan Ice Sports 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.| Canlan Ice vs. WiMi Hologram Cloud | Canlan Ice vs. Vita Coco | Canlan Ice vs. Constellation Brands Class | Canlan Ice vs. Radcom |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |