Correlation Between Integral and Where Food

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

Diversification Opportunities for Integral and Where Food

0.12

Correlation Coefficient

Integral  Where Food

Average diversification

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

Pair Corralation between Integral and Where Food

Considering the 90-day investment horizon Integral is expected to generate 9.24 times less return on investment than Where Food. In addition to that, Integral is 1.43 times more volatile than Where Food Comes. It trades about 0.01 of its total potential returns per unit of risk. Where Food Comes is currently generating about 0.11 per unit of volatility. If you would invest  1,090  in Where Food Comes on September 12, 2024 and sell it today you would earn a total of  145.00  from holding Where Food Comes or generate 13.3% return on investment over 90 days.

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

Integral Ad Science  vs.  Where Food Comes

Integral Ad Science

Risk-Adjusted Performance

0 of 100

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 current stock price uproar, may contribute to short-horizon losses for the private investors.

Where Food Comes

Risk-Adjusted Performance

8 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Where Food Comes are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly conflicting fundamental indicators, Where Food reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and Where Food

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

The idea behind Integral Ad Science and Where Food Comes 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.