Correlation Between Integral and Tinybeans Group

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

Diversification Opportunities for Integral and Tinybeans Group

0.28

Correlation Coefficient

Integral  Tinybeans Group

Modest diversification

The 3 months correlation between Integral and Tinybeans is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Tinybeans Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tinybeans Group 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 Tinybeans Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tinybeans Group has no effect on the direction of Integral i.e., Integral and Tinybeans Group go up and down completely randomly.

Pair Corralation between Integral and Tinybeans Group

Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.36 times more return on investment than Tinybeans Group. However, Integral Ad Science is 2.79 times less risky than Tinybeans Group. It trades about -0.06 of its potential returns per unit of risk. Tinybeans Group Limited is currently generating about -0.22 per unit of risk. If you would invest  1,154  in Integral Ad Science on December 1, 2024 and sell it today you would lose (102.00) from holding Integral Ad Science or give up 8.84% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Integral Ad Science  vs.  Tinybeans Group Limited

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Tinybeans Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Tinybeans Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Integral and Tinybeans Group

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

The idea behind Integral Ad Science and Tinybeans Group Limited 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.