Correlation Between Integral and Doubledown Interactive

Can any of the company-specific risk be diversified away by investing in both Integral and Doubledown Interactive 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 Integral and Doubledown Interactive into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integral Ad Science and Doubledown Interactive Co, you can compare the effects of market volatilities on Integral and Doubledown Interactive 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 Doubledown Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Doubledown Interactive.

Diversification Opportunities for Integral and Doubledown Interactive

0.22

Correlation Coefficient

Integral  Doubledown Interactive

Modest diversification

The 3 months correlation between Integral and Doubledown is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Doubledown Interactive Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Doubledown Interactive 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 Doubledown Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Doubledown Interactive has no effect on the direction of Integral i.e., Integral and Doubledown Interactive go up and down completely randomly.

Pair Corralation between Integral and Doubledown Interactive

Considering the 90-day investment horizon Integral is expected to generate 1.36 times less return on investment than Doubledown Interactive. But when comparing it to its historical volatility, Integral Ad Science is 1.09 times less risky than Doubledown Interactive. It trades about 0.03 of its potential returns per unit of risk. Doubledown Interactive Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  899.00  in Doubledown Interactive Co on September 5, 2024 and sell it today you would earn a total of  433.00  from holding Doubledown Interactive Co or generate 48.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Integral Ad Science  vs.  Doubledown Interactive Co

Integral Ad Science

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integral Ad Science has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Doubledown Interactive

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Doubledown Interactive Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong fundamental indicators, Doubledown Interactive is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Integral and Doubledown Interactive

The main advantage of trading using opposite Integral and Doubledown Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Doubledown Interactive 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 Doubledown Interactive will offset losses from the drop in Doubledown Interactive's long position.

The idea behind Integral Ad Science and Doubledown Interactive Co 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.

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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.