Correlation Between Life Time and Integral
Can any of the company-specific risk be diversified away by investing in both Life Time and Integral 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 Life Time and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Life Time Group and Integral Ad Science, you can compare the effects of market volatilities on Life Time and Integral 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 Life Time with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Time and Integral.
Diversification Opportunities for Life Time and Integral
Very good diversification
The 3 months correlation between Life and Integral is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Life Time Group and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Life Time 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 Life Time Group are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Life Time i.e., Life Time and Integral go up and down completely randomly.
Pair Corralation between Life Time and Integral
Considering the 90-day investment horizon Life Time is expected to generate 1.2 times less return on investment than Integral. But when comparing it to its historical volatility, Life Time Group is 2.26 times less risky than Integral. It trades about 0.12 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,062 in Integral Ad Science on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Integral Ad Science or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Life Time Group vs. Integral Ad Science
Performance |
| Timeline |
| Life Time Group |
| Integral Ad Science |
Life Time and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Life Time and Integral
The main advantage of trading using opposite Life Time and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Life Time position performs unexpectedly, Integral 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 Integral will offset losses from the drop in Integral's long position.| Life Time vs. Bowlero Corp | Life Time vs. Planet Fitness | Life Time vs. JAKKS Pacific | Life Time vs. Xponential Fitness |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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