Correlation Between Integral and XCHG Limited

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

Diversification Opportunities for Integral and XCHG Limited

0.3

Correlation Coefficient

Integral  XCHG Limited

Weak diversification

The 3 months correlation between Integral and XCHG is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and XCHG Limited American in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XCHG Limited American 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 XCHG Limited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XCHG Limited American has no effect on the direction of Integral i.e., Integral and XCHG Limited go up and down completely randomly.

Pair Corralation between Integral and XCHG Limited

Considering the 90-day investment horizon Integral Ad Science is expected to generate 0.35 times more return on investment than XCHG Limited. However, Integral Ad Science is 2.83 times less risky than XCHG Limited. It trades about -0.09 of its potential returns per unit of risk. XCHG Limited American is currently generating about -0.12 per unit of risk. If you would invest  1,042  in Integral Ad Science on December 19, 2024 and sell it today you would lose (138.00) from holding Integral Ad Science or give up 13.24% 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.  XCHG Limited American

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.

XCHG Limited American

Risk-Adjusted Performance

Very Weak

Over the last 90 days XCHG Limited American has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Integral and XCHG Limited

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

The idea behind Integral Ad Science and XCHG Limited American 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.