Correlation Between Ultra Clean and Integral
Can any of the company-specific risk be diversified away by investing in both Ultra Clean 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 Ultra Clean and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ultra Clean Holdings and Integral Ad Science, you can compare the effects of market volatilities on Ultra Clean 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 Ultra Clean with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ultra Clean and Integral.
Diversification Opportunities for Ultra Clean and Integral
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ultra and Integral is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Ultra Clean 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 Ultra Clean 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 Ultra Clean 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 Ultra Clean i.e., Ultra Clean and Integral go up and down completely randomly.
Pair Corralation between Ultra Clean and Integral
Given the investment horizon of 90 days Ultra Clean is expected to generate 1.16 times less return on investment than Integral. But when comparing it to its historical volatility, Ultra Clean Holdings is 1.45 times less risky than Integral. It trades about 0.11 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,051 in Integral Ad Science on August 24, 2024 and sell it today you would earn a total of 69.00 from holding Integral Ad Science or generate 6.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ultra Clean Holdings vs. Integral Ad Science
Performance |
| Timeline |
| Ultra Clean Holdings |
| Integral Ad Science |
Ultra Clean and Integral Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ultra Clean and Integral
The main advantage of trading using opposite Ultra Clean and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ultra Clean 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.| Ultra Clean vs. Amtech Systems | Ultra Clean vs. Veeco Instruments | Ultra Clean vs. Cohu Inc | Ultra Clean vs. Onto Innovation |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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