Correlation Between Integral and Perception Capital

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

Diversification Opportunities for Integral and Perception Capital

-0.26

Correlation Coefficient

Integral  Perception Capital

Very good diversification

The 3 months correlation between Integral and Perception is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Perception Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Perception Capital 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 Perception Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Perception Capital Corp has no effect on the direction of Integral i.e., Integral and Perception Capital go up and down completely randomly.

Pair Corralation between Integral and Perception Capital

Considering the 90-day investment horizon Integral Ad Science is expected to generate 13.26 times more return on investment than Perception Capital. However, Integral is 13.26 times more volatile than Perception Capital Corp. It trades about 0.01 of its potential returns per unit of risk. Perception Capital Corp is currently generating about 0.13 per unit of risk. If you would invest  1,099  in Integral Ad Science on October 27, 2024 and sell it today you would lose (88.00) from holding Integral Ad Science or give up 8.01% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	22.87%
Values	Daily Returns

Integral Ad Science  vs.  Perception Capital Corp

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 unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in February 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Perception Capital Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Perception Capital Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Perception Capital is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Integral and Perception Capital

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

The idea behind Integral Ad Science and Perception Capital 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.