Correlation Between Aimfinity Investment and Integral

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

By analyzing existing cross correlation between Aimfinity Investment I and Integral Ad Science, you can compare the effects of market volatilities on Aimfinity Investment 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 Aimfinity Investment with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aimfinity Investment and Integral.

Diversification Opportunities for Aimfinity Investment and Integral

-0.52

Correlation Coefficient

Aimfinity Investment  Integral

Excellent diversification

The 3 months correlation between Aimfinity and Integral is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Aimfinity Investment I 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 Aimfinity Investment 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 Aimfinity Investment I 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 Aimfinity Investment i.e., Aimfinity Investment and Integral go up and down completely randomly.

Pair Corralation between Aimfinity Investment and Integral

Assuming the 90 days horizon Aimfinity Investment I is expected to generate 0.95 times more return on investment than Integral. However, Aimfinity Investment I is 1.06 times less risky than Integral. It trades about 0.03 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.07 per unit of risk. If you would invest  1,178  in Aimfinity Investment I on October 26, 2024 and sell it today you would earn a total of  11.00  from holding Aimfinity Investment I or generate 0.93% return on investment over 90 days.

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

Aimfinity Investment I  vs.  Integral Ad Science

Aimfinity Investment

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Aimfinity Investment I are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Aimfinity Investment is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Aimfinity Investment and Integral

The main advantage of trading using opposite Aimfinity Investment and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aimfinity Investment 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.

The idea behind Aimfinity Investment I and Integral Ad Science 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.

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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.