Correlation Between Integral and Lizhi
Can any of the company-specific risk be diversified away by investing in both Integral and Lizhi 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 Lizhi 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 Lizhi Inc, you can compare the effects of market volatilities on Integral and Lizhi 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 Lizhi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Lizhi.
Diversification Opportunities for Integral and Lizhi
Very good diversification
The 3 months correlation between Integral and Lizhi is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Lizhi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lizhi Inc 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 Lizhi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lizhi Inc has no effect on the direction of Integral i.e., Integral and Lizhi go up and down completely randomly.
Pair Corralation between Integral and Lizhi
Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.79 times more return on investment than Lizhi. However, Integral Ad Science is 1.27 times less risky than Lizhi. It trades about -0.03 of its potential returns per unit of risk. Lizhi Inc is currently generating about -0.06 per unit of risk. If you would invest 1,158 in Integral Ad Science on August 26, 2024 and sell it today you would lose (50.00) from holding Integral Ad Science or give up 4.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Lizhi Inc
Performance |
| Timeline |
| Integral Ad Science |
| Lizhi Inc |
Integral and Lizhi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Lizhi
The main advantage of trading using opposite Integral and Lizhi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Lizhi 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 Lizhi will offset losses from the drop in Lizhi's long position.| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Clear Channel Outdoor |
| Lizhi vs. Parker Hannifin | Lizhi vs. East Africa Metals | Lizhi vs. Uranium Energy Corp | Lizhi vs. Apogee Enterprises |
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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