Correlation Between Global E and Integral
Can any of the company-specific risk be diversified away by investing in both Global E 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 Global E and Integral into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global E Online and Integral Ad Science, you can compare the effects of market volatilities on Global E 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 Global E with a short position of Integral. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global E and Integral.
Diversification Opportunities for Global E and Integral
Poor diversification
The 3 months correlation between Global and Integral is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Global E Online 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 Global E 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 Global E Online 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 Global E i.e., Global E and Integral go up and down completely randomly.
Pair Corralation between Global E and Integral
Given the investment horizon of 90 days Global E Online is expected to under-perform the Integral. In addition to that, Global E is 1.46 times more volatile than Integral Ad Science. It trades about -0.18 of its total potential returns per unit of risk. Integral Ad Science is currently generating about -0.12 per unit of volatility. If you would invest 1,038 in Integral Ad Science on December 28, 2024 and sell it today you would lose (174.00) from holding Integral Ad Science or give up 16.76% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Global E Online vs. Integral Ad Science
Performance |
Timeline |
Global E Online |
Integral Ad Science |
Global E and Integral Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global E and Integral
The main advantage of trading using opposite Global E and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global E 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.Global E vs. MercadoLibre | Global E vs. PDD Holdings | Global E vs. JD Inc Adr | Global E vs. Alibaba Group Holding |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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