Correlation Between Integral and Centurion Acquisition

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

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

Diversification Opportunities for Integral and Centurion Acquisition

-0.14

Correlation Coefficient

Integral  Centurion Acquisition

Good diversification

The 3 months correlation between Integral and Centurion is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Centurion Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centurion Acquisition and Integral 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 Integral Ad Science are associated (or correlated) with Centurion Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centurion Acquisition has no effect on the direction of Integral i.e., Integral and Centurion Acquisition go up and down completely randomly.

Pair Corralation between Integral and Centurion Acquisition

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Centurion Acquisition. In addition to that, Integral is 18.18 times more volatile than Centurion Acquisition Corp. It trades about -0.1 of its total potential returns per unit of risk. Centurion Acquisition Corp is currently generating about 0.22 per unit of volatility. If you would invest  1,009  in Centurion Acquisition Corp on December 20, 2024 and sell it today you would earn a total of  17.00  from holding Centurion Acquisition Corp or generate 1.68% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Integral Ad Science  vs.  Centurion Acquisition Corp

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.

Centurion Acquisition

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Centurion Acquisition Corp are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Centurion Acquisition is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Integral and Centurion Acquisition

The main advantage of trading using opposite Integral and Centurion Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral position performs unexpectedly, Centurion Acquisition 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 Centurion Acquisition will offset losses from the drop in Centurion Acquisition's long position.

The idea behind Integral Ad Science and Centurion Acquisition Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.