Correlation Between IONQ and Integrated Media

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

By analyzing existing cross correlation between IONQ Inc and Integrated Media Technology, you can compare the effects of market volatilities on IONQ and Integrated Media 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 IONQ with a short position of Integrated Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of IONQ and Integrated Media.

Diversification Opportunities for IONQ and Integrated Media

-0.02

Correlation Coefficient

IONQ  Integrated Media

Good diversification

The 3 months correlation between IONQ and Integrated is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding IONQ Inc and Integrated Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Media Tec and IONQ 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 IONQ Inc are associated (or correlated) with Integrated Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Media Tec has no effect on the direction of IONQ i.e., IONQ and Integrated Media go up and down completely randomly.

Pair Corralation between IONQ and Integrated Media

Given the investment horizon of 90 days IONQ Inc is expected to generate 0.96 times more return on investment than Integrated Media. However, IONQ Inc is 1.05 times less risky than Integrated Media. It trades about 0.09 of its potential returns per unit of risk. Integrated Media Technology is currently generating about -0.02 per unit of risk. If you would invest  1,285  in IONQ Inc on September 14, 2024 and sell it today you would earn a total of  2,098  from holding IONQ Inc or generate 163.27% return on investment over 90 days.

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

IONQ Inc  vs.  Integrated Media Technology

IONQ Inc

Risk-Adjusted Performance

24 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in IONQ Inc are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, IONQ reported solid returns over the last few months and may actually be approaching a breakup point.

Integrated Media Tec

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integrated Media Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Integrated Media is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with IONQ and Integrated Media

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

The idea behind IONQ Inc and Integrated Media Technology 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.