Correlation Between Integral and TKO Group

Can any of the company-specific risk be diversified away by investing in both Integral and TKO Group 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 TKO Group 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 TKO Group Holdings,, you can compare the effects of market volatilities on Integral and TKO Group 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 TKO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and TKO Group.

Diversification Opportunities for Integral and TKO Group

-0.27

Correlation Coefficient

Integral  TKO Group

Very good diversification

The 3 months correlation between Integral and TKO is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and TKO Group Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKO Group Holdings, 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 TKO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKO Group Holdings, has no effect on the direction of Integral i.e., Integral and TKO Group go up and down completely randomly.

Pair Corralation between Integral and TKO Group

Considering the 90-day investment horizon Integral is expected to generate 7.37 times less return on investment than TKO Group. In addition to that, Integral is 1.42 times more volatile than TKO Group Holdings,. It trades about 0.02 of its total potential returns per unit of risk. TKO Group Holdings, is currently generating about 0.18 per unit of volatility. If you would invest  11,499  in TKO Group Holdings, on September 12, 2024 and sell it today you would earn a total of  2,601  from holding TKO Group Holdings, or generate 22.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Integral Ad Science  vs.  TKO Group Holdings,

Integral Ad Science

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

TKO Group Holdings,

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in TKO Group Holdings, are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward-looking signals, TKO Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and TKO Group

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

The idea behind Integral Ad Science and TKO Group Holdings, 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.