Correlation Between Integral and Emerald Expositions
Can any of the company-specific risk be diversified away by investing in both Integral and Emerald Expositions 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 Emerald Expositions 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 Emerald Expositions Events, you can compare the effects of market volatilities on Integral and Emerald Expositions 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 Emerald Expositions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Emerald Expositions.
Diversification Opportunities for Integral and Emerald Expositions
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Integral and Emerald is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Emerald Expositions Events in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerald Expositions 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 Emerald Expositions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerald Expositions has no effect on the direction of Integral i.e., Integral and Emerald Expositions go up and down completely randomly.
Pair Corralation between Integral and Emerald Expositions
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Emerald Expositions. In addition to that, Integral is 1.07 times more volatile than Emerald Expositions Events. It trades about -0.06 of its total potential returns per unit of risk. Emerald Expositions Events is currently generating about 0.08 per unit of volatility. If you would invest 464.00 in Emerald Expositions Events on August 27, 2024 and sell it today you would earn a total of 24.00 from holding Emerald Expositions Events or generate 5.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Emerald Expositions Events
Performance |
| Timeline |
| Integral Ad Science |
| Emerald Expositions |
Integral and Emerald Expositions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Emerald Expositions
The main advantage of trading using opposite Integral and Emerald Expositions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Emerald Expositions 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 Emerald Expositions will offset losses from the drop in Emerald Expositions' long position.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
| Emerald Expositions vs. Mirriad Advertising plc | Emerald Expositions vs. INEO Tech Corp | Emerald Expositions vs. Innovid Corp | Emerald Expositions 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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