Correlation Between Integral Acquisition and HHG Capital

Can any of the company-specific risk be diversified away by investing in both Integral Acquisition and HHG Capital 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 Acquisition and HHG Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Integral Acquisition and HHG Capital, you can compare the effects of market volatilities on Integral Acquisition and HHG Capital 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 Acquisition with a short position of HHG Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral Acquisition and HHG Capital.

Diversification Opportunities for Integral Acquisition and HHG Capital

0.29

Correlation Coefficient

Integral Acquisition  HHG Capital

Modest diversification

The 3 months correlation between Integral and HHG is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Integral Acquisition and HHG Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HHG Capital and Integral Acquisition 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 Acquisition are associated (or correlated) with HHG Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HHG Capital has no effect on the direction of Integral Acquisition i.e., Integral Acquisition and HHG Capital go up and down completely randomly.

Pair Corralation between Integral Acquisition and HHG Capital

Assuming the 90 days horizon Integral Acquisition is expected to under-perform the HHG Capital. But the stock apears to be less risky and, when comparing its historical volatility, Integral Acquisition is 2.65 times less risky than HHG Capital. The stock trades about -0.14 of its potential returns per unit of risk. The HHG Capital is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  0.29  in HHG Capital on September 17, 2024 and sell it today you would earn a total of  0.28  from holding HHG Capital or generate 96.55% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	71.43%
Values	Daily Returns

Integral Acquisition  vs.  HHG Capital

Integral Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integral Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

HHG Capital

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days HHG Capital has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal fundamental indicators, HHG Capital showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integral Acquisition and HHG Capital

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

The idea behind Integral Acquisition and HHG Capital 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.