Correlation Between Integral and Securitas
Can any of the company-specific risk be diversified away by investing in both Integral and Securitas 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 Securitas 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 Securitas AB, you can compare the effects of market volatilities on Integral and Securitas 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 Securitas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Securitas.
Diversification Opportunities for Integral and Securitas
Weak diversification
The 3 months correlation between Integral and Securitas is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Securitas AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Securitas AB 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 Securitas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Securitas AB has no effect on the direction of Integral i.e., Integral and Securitas go up and down completely randomly.
Pair Corralation between Integral and Securitas
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Securitas. In addition to that, Integral is 1.33 times more volatile than Securitas AB. It trades about 0.0 of its total potential returns per unit of risk. Securitas AB is currently generating about 0.19 per unit of volatility. If you would invest 1,052 in Securitas AB on September 2, 2024 and sell it today you would earn a total of 233.00 from holding Securitas AB or generate 22.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 84.38% |
| Values | Daily Returns |
Integral Ad Science vs. Securitas AB
Performance |
| Timeline |
| Integral Ad Science |
| Securitas AB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Integral and Securitas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Securitas
The main advantage of trading using opposite Integral and Securitas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Securitas 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 Securitas will offset losses from the drop in Securitas' long position.The idea behind Integral Ad Science and Securitas AB 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.| Securitas vs. Emerson Radio | Securitas vs. Zedge Inc | Securitas vs. Integral Ad Science | Securitas vs. WiMi Hologram Cloud |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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