Correlation Between Integral and Wang Lee

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

Diversification Opportunities for Integral and Wang Lee

0.2

Correlation Coefficient

Integral  Wang Lee

Modest diversification

The 3 months correlation between Integral and Wang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Wang Lee Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wang Lee 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 Wang Lee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wang Lee Group, has no effect on the direction of Integral i.e., Integral and Wang Lee go up and down completely randomly.

Pair Corralation between Integral and Wang Lee

Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Wang Lee. But the stock apears to be less risky and, when comparing its historical volatility, Integral Ad Science is 5.83 times less risky than Wang Lee. The stock trades about -0.1 of its potential returns per unit of risk. The Wang Lee Group, is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  194.00  in Wang Lee Group, on December 20, 2024 and sell it today you would earn a total of  354.00  from holding Wang Lee Group, or generate 182.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Integral Ad Science  vs.  Wang Lee Group,

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 weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Wang Lee Group,

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Wang Lee Group, are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, Wang Lee unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral and Wang Lee

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

The idea behind Integral Ad Science and Wang Lee Group, 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.