Correlation Between Integral and 55300RAB7

Can any of the company-specific risk be diversified away by investing in both Integral and 55300RAB7 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 55300RAB7 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 MGM China Holdings, you can compare the effects of market volatilities on Integral and 55300RAB7 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 55300RAB7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and 55300RAB7.

Diversification Opportunities for Integral and 55300RAB7

0.24

Correlation Coefficient

Integral  55300RAB7

Modest diversification

The 3 months correlation between Integral and 55300RAB7 is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and MGM China Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM China 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 55300RAB7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM China Holdings has no effect on the direction of Integral i.e., Integral and 55300RAB7 go up and down completely randomly.

Pair Corralation between Integral and 55300RAB7

Considering the 90-day investment horizon Integral Ad Science is expected to generate 3.99 times more return on investment than 55300RAB7. However, Integral is 3.99 times more volatile than MGM China Holdings. It trades about 0.0 of its potential returns per unit of risk. MGM China Holdings is currently generating about -0.18 per unit of risk. If you would invest  1,090  in Integral Ad Science on September 14, 2024 and sell it today you would lose (28.00) from holding Integral Ad Science or give up 2.57% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	55.56%
Values	Daily Returns

Integral Ad Science  vs.  MGM China Holdings

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.

MGM China Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MGM China Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for MGM China Holdings investors.

Pair Trading with Integral and 55300RAB7

The main advantage of trading using opposite Integral and 55300RAB7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, 55300RAB7 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 55300RAB7 will offset losses from the drop in 55300RAB7's long position.

The idea behind Integral Ad Science and MGM China 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.