Correlation Between Integral and IClick Interactive

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

Diversification Opportunities for Integral and IClick Interactive

-0.66

Correlation Coefficient

Integral  IClick Interactive

Excellent diversification

The 3 months correlation between Integral and IClick is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and iClick Interactive Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iClick Interactive Asia 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 IClick Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iClick Interactive Asia has no effect on the direction of Integral i.e., Integral and IClick Interactive go up and down completely randomly.

Pair Corralation between Integral and IClick Interactive

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the IClick Interactive. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 2.75 times less risky than IClick Interactive. The stock trades about -0.04 of its potential returns per unit of risk. The iClick Interactive Asia is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  831.00  in iClick Interactive Asia on October 25, 2024 and sell it today you would earn a total of  24.50  from holding iClick Interactive Asia or generate 2.95% return on investment over 90 days.

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

Integral Ad Science  vs.  iClick Interactive Asia

Integral Ad Science

Risk-Adjusted Performance

0 of 100

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

iClick Interactive Asia

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in iClick Interactive Asia are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile essential indicators, IClick Interactive disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and IClick Interactive

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

The idea behind Integral Ad Science and iClick Interactive Asia 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.