Correlation Between EQ and Integral

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

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

Diversification Opportunities for EQ and Integral

0.0

Correlation Coefficient

EQ  Integral

Pay attention - limited upside

The 3 months correlation between EQ and Integral is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EQ Inc 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 EQ 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 EQ Inc 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 EQ i.e., EQ and Integral go up and down completely randomly.

Pair Corralation between EQ and Integral

If you would invest (100.00) in EQ Inc on December 28, 2024 and sell it today you would earn a total of  100.00  from holding EQ Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

EQ Inc  vs.  Integral Ad Science

EQ Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days EQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, EQ is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Integral Ad Science

Risk-Adjusted Performance

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 April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with EQ and Integral

The main advantage of trading using opposite EQ and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EQ 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 EQ Inc 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.