Correlation Between Integral and MARATHON

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

Diversification Opportunities for Integral and MARATHON

0.12

Correlation Coefficient

Integral  MARATHON

Average diversification

The 3 months correlation between Integral and MARATHON is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and MARATHON PETROLEUM P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARATHON PETROLEUM 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 MARATHON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARATHON PETROLEUM has no effect on the direction of Integral i.e., Integral and MARATHON go up and down completely randomly.

Pair Corralation between Integral and MARATHON

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the MARATHON. In addition to that, Integral is 9.68 times more volatile than MARATHON PETROLEUM P. It trades about -0.05 of its total potential returns per unit of risk. MARATHON PETROLEUM P is currently generating about -0.19 per unit of volatility. If you would invest  9,984  in MARATHON PETROLEUM P on October 25, 2024 and sell it today you would lose (94.00) from holding MARATHON PETROLEUM P or give up 0.94% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

Integral Ad Science  vs.  MARATHON PETROLEUM P

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 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.

MARATHON PETROLEUM

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MARATHON PETROLEUM P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, MARATHON is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Integral and MARATHON

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

The idea behind Integral Ad Science and MARATHON PETROLEUM P 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.

Check out your portfolio center.

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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.