Correlation Between Integral and Global E
Can any of the company-specific risk be diversified away by investing in both Integral and Global E 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 Global E 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 Global E Online, you can compare the effects of market volatilities on Integral and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Global E.
Diversification Opportunities for Integral and Global E
Significant diversification
The 3 months correlation between Integral and Global is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Integral i.e., Integral and Global E go up and down completely randomly.
Pair Corralation between Integral and Global E
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Global E. In addition to that, Integral is 1.42 times more volatile than Global E Online. It trades about -0.01 of its total potential returns per unit of risk. Global E Online is currently generating about 0.07 per unit of volatility. If you would invest 3,777 in Global E Online on August 28, 2024 and sell it today you would earn a total of 1,425 from holding Global E Online or generate 37.73% 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. Global E Online
Performance |
| Timeline |
| Integral Ad Science |
| Global E Online |
Integral and Global E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Global E
The main advantage of trading using opposite Integral and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.| 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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