Correlation Between Integral and Osaka Steel

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

Diversification Opportunities for Integral and Osaka Steel

0.0

Correlation Coefficient

Integral  Osaka Steel

Pay attention - limited upside

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

Pair Corralation between Integral and Osaka Steel

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Osaka Steel. In addition to that, Integral is 25.51 times more volatile than Osaka Steel Co,. It trades about -0.04 of its total potential returns per unit of risk. Osaka Steel Co, is currently generating about 0.1 per unit of volatility. If you would invest  1,010  in Osaka Steel Co, on October 20, 2024 and sell it today you would earn a total of  10.00  from holding Osaka Steel Co, or generate 0.99% 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.  Osaka Steel Co,

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 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.

Osaka Steel Co,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Osaka Steel Co, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Osaka Steel is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Integral and Osaka Steel

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

The idea behind Integral Ad Science and Osaka Steel Co, 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.