Correlation Between Integral and Kellanova

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

Diversification Opportunities for Integral and Kellanova

-0.24

Correlation Coefficient

Integral  Kellanova

Very good diversification

The 3 months correlation between Integral and Kellanova is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Kellanova in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kellanova 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 Kellanova. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kellanova has no effect on the direction of Integral i.e., Integral and Kellanova go up and down completely randomly.

Pair Corralation between Integral and Kellanova

Considering the 90-day investment horizon Integral Ad Science is expected to generate 14.75 times more return on investment than Kellanova. However, Integral is 14.75 times more volatile than Kellanova. It trades about 0.01 of its potential returns per unit of risk. Kellanova is currently generating about 0.14 per unit of risk. If you would invest  1,024  in Integral Ad Science on October 10, 2024 and sell it today you would lose (4.00) from holding Integral Ad Science or give up 0.39% of portfolio value over 90 days.

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

Integral Ad Science  vs.  Kellanova

Integral Ad Science

Risk-Adjusted Performance

1 of 100

Very 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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Kellanova

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kellanova are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent forward-looking signals, Kellanova is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Integral and Kellanova

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

The idea behind Integral Ad Science and Kellanova 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.