Correlation Between Star Holdings and Integral
Can any of the company-specific risk be diversified away by investing in both Star Holdings 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 Star Holdings and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Holdings and Integral Ad Science, you can compare the effects of market volatilities on Star Holdings 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 Star Holdings with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Holdings and Integral.
Diversification Opportunities for Star Holdings and Integral
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and Integral is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Star Holdings 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 Star Holdings 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 Star Holdings 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 Star Holdings i.e., Star Holdings and Integral go up and down completely randomly.
Pair Corralation between Star Holdings and Integral
Given the investment horizon of 90 days Star Holdings is expected to under-perform the Integral. But the stock apears to be less risky and, when comparing its historical volatility, Star Holdings is 1.41 times less risky than Integral. The stock trades about -0.04 of its potential returns per unit of risk. The Integral Ad Science is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 940.00 in Integral Ad Science on September 3, 2024 and sell it today you would earn a total of 178.00 from holding Integral Ad Science or generate 18.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.66% |
| Values | Daily Returns |
Star Holdings vs. Integral Ad Science
Performance |
| Timeline |
| Star Holdings |
| Integral Ad Science |
Star Holdings and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Holdings and Integral
The main advantage of trading using opposite Star Holdings and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Holdings 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.| Star Holdings vs. Integral Ad Science | Star Holdings vs. Stagwell | Star Holdings vs. Socket Mobile | Star Holdings vs. Tesla Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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