Correlation Between Integrated Media and IONQ

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

By analyzing existing cross correlation between Integrated Media Technology and IONQ Inc, you can compare the effects of market volatilities on Integrated Media and IONQ 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 Integrated Media with a short position of IONQ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integrated Media and IONQ.

Diversification Opportunities for Integrated Media and IONQ

-0.01

Correlation Coefficient

Integrated Media  IONQ

Good diversification

The 3 months correlation between Integrated and IONQ is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Integrated Media Technology and IONQ Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IONQ Inc and Integrated Media 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 Integrated Media Technology are associated (or correlated) with IONQ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IONQ Inc has no effect on the direction of Integrated Media i.e., Integrated Media and IONQ go up and down completely randomly.

Pair Corralation between Integrated Media and IONQ

Given the investment horizon of 90 days Integrated Media is expected to generate 3.52 times less return on investment than IONQ. But when comparing it to its historical volatility, Integrated Media Technology is 1.48 times less risky than IONQ. It trades about 0.05 of its potential returns per unit of risk. IONQ Inc is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,914  in IONQ Inc on September 16, 2024 and sell it today you would earn a total of  469.00  from holding IONQ Inc or generate 16.09% return on investment over 90 days.

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

Integrated Media Technology  vs.  IONQ Inc

Integrated Media Tec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Media Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Integrated Media is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

IONQ Inc

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IONQ Inc are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, IONQ reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integrated Media and IONQ

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

The idea behind Integrated Media Technology and IONQ Inc 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.