Correlation Between CuriosityStream and Integral

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

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

Diversification Opportunities for CuriosityStream and Integral

0.31

Correlation Coefficient

CuriosityStream  Integral

Weak diversification

The 3 months correlation between CuriosityStream and Integral is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding CuriosityStream 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 CuriosityStream 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 CuriosityStream 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 CuriosityStream i.e., CuriosityStream and Integral go up and down completely randomly.

Pair Corralation between CuriosityStream and Integral

Assuming the 90 days horizon CuriosityStream is expected to generate 6.54 times more return on investment than Integral. However, CuriosityStream is 6.54 times more volatile than Integral Ad Science. It trades about 0.08 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.02 per unit of risk. If you would invest  3.49  in CuriosityStream on October 21, 2024 and sell it today you would lose (0.25) from holding CuriosityStream or give up 7.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

CuriosityStream  vs.  Integral Ad Science

CuriosityStream

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CuriosityStream are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal forward indicators, CuriosityStream showed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with CuriosityStream and Integral

The main advantage of trading using opposite CuriosityStream and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CuriosityStream 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 CuriosityStream 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.