Correlation Between Integral and Thunder Gold
Can any of the company-specific risk be diversified away by investing in both Integral and Thunder Gold 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 Thunder Gold 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 Thunder Gold Corp, you can compare the effects of market volatilities on Integral and Thunder Gold 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 Thunder Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Thunder Gold.
Diversification Opportunities for Integral and Thunder Gold
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integral and Thunder is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Thunder Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Gold Corp 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 Thunder Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Gold Corp has no effect on the direction of Integral i.e., Integral and Thunder Gold go up and down completely randomly.
Pair Corralation between Integral and Thunder Gold
Considering the 90-day investment horizon Integral is expected to generate 16.3 times less return on investment than Thunder Gold. But when comparing it to its historical volatility, Integral Ad Science is 7.67 times less risky than Thunder Gold. It trades about 0.04 of its potential returns per unit of risk. Thunder Gold Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2.97 in Thunder Gold Corp on September 3, 2024 and sell it today you would earn a total of 0.28 from holding Thunder Gold Corp or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Thunder Gold Corp
Performance |
| Timeline |
| Integral Ad Science |
| Thunder Gold Corp |
Integral and Thunder Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Thunder Gold
The main advantage of trading using opposite Integral and Thunder Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Thunder Gold 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 Thunder Gold will offset losses from the drop in Thunder Gold's long position.The idea behind Integral Ad Science and Thunder Gold Corp 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.| Thunder Gold vs. Legacy Education | Thunder Gold vs. Apple Inc | Thunder Gold vs. NVIDIA | Thunder Gold vs. Microsoft |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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