Correlation Between Integral and Sable Offshore

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

Diversification Opportunities for Integral and Sable Offshore

0.27

Correlation Coefficient

Integral  Sable Offshore

Modest diversification

The 3 months correlation between Integral and Sable is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Sable Offshore Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sable Offshore 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 Sable Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sable Offshore Corp has no effect on the direction of Integral i.e., Integral and Sable Offshore go up and down completely randomly.

Pair Corralation between Integral and Sable Offshore

Considering the 90-day investment horizon Integral is expected to generate 2.2 times less return on investment than Sable Offshore. In addition to that, Integral is 1.08 times more volatile than Sable Offshore Corp. It trades about 0.03 of its total potential returns per unit of risk. Sable Offshore Corp is currently generating about 0.07 per unit of volatility. If you would invest  1,008  in Sable Offshore Corp on September 24, 2024 and sell it today you would earn a total of  1,219  from holding Sable Offshore Corp or generate 120.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	94.77%
Values	Daily Returns

Integral Ad Science  vs.  Sable Offshore 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 comparatively stable basic indicators, Integral is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Sable Offshore Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sable Offshore Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Sable Offshore is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Integral and Sable Offshore

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

The idea behind Integral Ad Science and Sable Offshore 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.