Correlation Between Integral and PAYPAL
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By analyzing existing cross correlation between Integral Ad Science and PAYPAL HOLDINGS INC, you can compare the effects of market volatilities on Integral and PAYPAL 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 PAYPAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and PAYPAL.
Diversification Opportunities for Integral and PAYPAL
Good diversification
The 3 months correlation between Integral and PAYPAL is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and PAYPAL HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PAYPAL HOLDINGS 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 PAYPAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PAYPAL HOLDINGS INC has no effect on the direction of Integral i.e., Integral and PAYPAL go up and down completely randomly.
Pair Corralation between Integral and PAYPAL
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the PAYPAL. In addition to that, Integral is 6.84 times more volatile than PAYPAL HOLDINGS INC. It trades about 0.0 of its total potential returns per unit of risk. PAYPAL HOLDINGS INC is currently generating about 0.03 per unit of volatility. If you would invest 8,706 in PAYPAL HOLDINGS INC on September 12, 2024 and sell it today you would earn a total of 445.00 from holding PAYPAL HOLDINGS INC or generate 5.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.09% |
| Values | Daily Returns |
Integral Ad Science vs. PAYPAL HOLDINGS INC
Performance |
| Timeline |
| Integral Ad Science |
| PAYPAL HOLDINGS INC |
Integral and PAYPAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and PAYPAL
The main advantage of trading using opposite Integral and PAYPAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, PAYPAL 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 PAYPAL will offset losses from the drop in PAYPAL's long position.The idea behind Integral Ad Science and PAYPAL HOLDINGS INC 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.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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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