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

0.12

Correlation Coefficient

Global E  Integral

Average diversification

The 3 months correlation between Global and Integral is 0.12. 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 generate 0.94 times more return on investment than Integral. However, Global E Online is 1.06 times less risky than Integral. It trades about 0.04 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.01 per unit of risk. If you would invest  2,771  in Global E Online on December 3, 2024 and sell it today you would earn a total of  1,491  from holding Global E Online or generate 53.81% return on investment over 90 days.

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

Global E Online  vs.  Integral Ad Science

Global E Online

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

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 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 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.

The idea behind Global E Online 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.