Correlation Between Coupang LLC and Integral

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

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

Diversification Opportunities for Coupang LLC and Integral

0.66

Correlation Coefficient

Coupang LLC  Integral

Poor diversification

The 3 months correlation between Coupang and Integral is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Coupang LLC 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 Coupang LLC 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 Coupang LLC 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 Coupang LLC i.e., Coupang LLC and Integral go up and down completely randomly.

Pair Corralation between Coupang LLC and Integral

Given the investment horizon of 90 days Coupang LLC is expected to under-perform the Integral. But the stock apears to be less risky and, when comparing its historical volatility, Coupang LLC is 1.16 times less risky than Integral. The stock trades about -0.1 of its potential returns per unit of risk. The Integral Ad Science is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  1,158  in Integral Ad Science on October 25, 2024 and sell it today you would lose (142.00) from holding Integral Ad Science or give up 12.26% of portfolio value over 90 days.

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

Coupang LLC  vs.  Integral Ad Science

Coupang LLC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Coupang LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Coupang LLC and Integral

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

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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.