Correlation Between Integral and United Parks

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

Diversification Opportunities for Integral and United Parks

0.58

Correlation Coefficient

Integral  United Parks

Very weak diversification

The 3 months correlation between Integral and United is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and United Parks Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Parks Resorts 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 United Parks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Parks Resorts has no effect on the direction of Integral i.e., Integral and United Parks go up and down completely randomly.

Pair Corralation between Integral and United Parks

Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.97 times more return on investment than United Parks. However, Integral Ad Science is 1.03 times less risky than United Parks. It trades about -0.12 of its potential returns per unit of risk. United Parks Resorts is currently generating about -0.12 per unit of risk. If you would invest  1,038  in Integral Ad Science on December 29, 2024 and sell it today you would lose (174.00) from holding Integral Ad Science or give up 16.76% of portfolio value over 90 days.

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

Integral Ad Science  vs.  United Parks Resorts

Integral Ad Science

Risk-Adjusted Performance

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

United Parks Resorts

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Parks Resorts has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Integral and United Parks

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

The idea behind Integral Ad Science and United Parks Resorts 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.