Correlation Between Integral and Univest Pennsylvania

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

Diversification Opportunities for Integral and Univest Pennsylvania

0.27

Correlation Coefficient

Integral  Univest Pennsylvania

Modest diversification

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

Pair Corralation between Integral and Univest Pennsylvania

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Univest Pennsylvania. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 1.1 times less risky than Univest Pennsylvania. The stock trades about -0.26 of its potential returns per unit of risk. The Univest Pennsylvania is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest  3,204  in Univest Pennsylvania on September 26, 2024 and sell it today you would lose (217.00) from holding Univest Pennsylvania or give up 6.77% of portfolio value over 90 days.

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

Integral Ad Science  vs.  Univest Pennsylvania

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.

Univest Pennsylvania

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Univest Pennsylvania are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Even with relatively fragile basic indicators, Univest Pennsylvania may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Integral and Univest Pennsylvania

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

The idea behind Integral Ad Science and Univest Pennsylvania 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.