Correlation Between Stagwell and Integral
Can any of the company-specific risk be diversified away by investing in both Stagwell 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 Stagwell and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stagwell and Integral Ad Science, you can compare the effects of market volatilities on Stagwell 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 Stagwell with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and Integral.
Diversification Opportunities for Stagwell and Integral
Significant diversification
The 3 months correlation between Stagwell and Integral is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell 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 Stagwell 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 Stagwell 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 Stagwell i.e., Stagwell and Integral go up and down completely randomly.
Pair Corralation between Stagwell and Integral
Given the investment horizon of 90 days Stagwell is expected to generate 0.69 times more return on investment than Integral. However, Stagwell is 1.45 times less risky than Integral. It trades about 0.4 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.06 per unit of risk. If you would invest 627.00 in Stagwell on August 27, 2024 and sell it today you would earn a total of 155.00 from holding Stagwell or generate 24.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stagwell vs. Integral Ad Science
Performance |
| Timeline |
| Stagwell |
| Integral Ad Science |
Stagwell and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and Integral
The main advantage of trading using opposite Stagwell and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell 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.| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
| Integral vs. Mirriad Advertising plc | Integral vs. INEO Tech Corp | Integral vs. Innovid Corp | Integral vs. Townsquare Media |
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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