Correlation Between Integral and HNI Corp

Can any of the company-specific risk be diversified away by investing in both Integral and HNI Corp 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 HNI Corp 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 HNI Corp, you can compare the effects of market volatilities on Integral and HNI Corp 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 HNI Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and HNI Corp.

Diversification Opportunities for Integral and HNI Corp

0.0

Correlation Coefficient

Integral  HNI Corp

Pay attention - limited upside

The 3 months correlation between Integral and HNI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and HNI Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HNI Corp 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 HNI Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HNI Corp has no effect on the direction of Integral i.e., Integral and HNI Corp go up and down completely randomly.

Pair Corralation between Integral and HNI Corp

Considering the 90-day investment horizon Integral is expected to generate 1.52 times less return on investment than HNI Corp. In addition to that, Integral is 1.89 times more volatile than HNI Corp. It trades about 0.02 of its total potential returns per unit of risk. HNI Corp is currently generating about 0.07 per unit of volatility. If you would invest  2,899  in HNI Corp on October 3, 2024 and sell it today you would earn a total of  2,120  from holding HNI Corp or generate 73.13% return on investment over 90 days.

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

Integral Ad Science  vs.  HNI Corp

Integral Ad Science

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Integral is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

HNI Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HNI Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, HNI Corp is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Integral and HNI Corp

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

The idea behind Integral Ad Science and HNI 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.