Correlation Between Integral and SkyWest
Can any of the company-specific risk be diversified away by investing in both Integral and SkyWest 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 SkyWest 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 SkyWest, you can compare the effects of market volatilities on Integral and SkyWest 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 SkyWest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and SkyWest.
Diversification Opportunities for Integral and SkyWest
Modest diversification
The 3 months correlation between Integral and SkyWest is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and SkyWest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SkyWest 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 SkyWest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SkyWest has no effect on the direction of Integral i.e., Integral and SkyWest go up and down completely randomly.
Pair Corralation between Integral and SkyWest
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the SkyWest. In addition to that, Integral is 1.49 times more volatile than SkyWest. It trades about -0.06 of its total potential returns per unit of risk. SkyWest is currently generating about 0.36 per unit of volatility. If you would invest 9,482 in SkyWest on August 28, 2024 and sell it today you would earn a total of 2,029 from holding SkyWest or generate 21.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. SkyWest
Performance |
| Timeline |
| Integral Ad Science |
| SkyWest |
Integral and SkyWest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and SkyWest
The main advantage of trading using opposite Integral and SkyWest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, SkyWest 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 SkyWest will offset losses from the drop in SkyWest's long position.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
| SkyWest vs. Copa Holdings SA | SkyWest vs. Sun Country Airlines | SkyWest vs. Air Transport Services | SkyWest vs. Frontier Group Holdings |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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