Correlation Between Scienjoy Holding and Integral

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

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

Diversification Opportunities for Scienjoy Holding and Integral

-0.27

Correlation Coefficient

Scienjoy Holding  Integral

Very good diversification

The 3 months correlation between Scienjoy and Integral is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Scienjoy Holding Corp and Integral Ad Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integral Ad Science and Scienjoy Holding 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 Scienjoy Holding Corp are associated (or correlated) with Integral. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integral Ad Science has no effect on the direction of Scienjoy Holding i.e., Scienjoy Holding and Integral go up and down completely randomly.

Pair Corralation between Scienjoy Holding and Integral

Allowing for the 90-day total investment horizon Scienjoy Holding Corp is expected to under-perform the Integral. In addition to that, Scienjoy Holding is 1.73 times more volatile than Integral Ad Science. It trades about -0.02 of its total potential returns per unit of risk. Integral Ad Science is currently generating about 0.01 per unit of volatility. If you would invest  1,228  in Integral Ad Science on October 5, 2024 and sell it today you would lose (157.00) from holding Integral Ad Science or give up 12.79% of portfolio value over 90 days.

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

Scienjoy Holding Corp  vs.  Integral Ad Science

Scienjoy Holding Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Scienjoy Holding Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward-looking indicators, Scienjoy Holding may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Integral Ad Science

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Integral may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Scienjoy Holding and Integral

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

The idea behind Scienjoy Holding Corp and Integral Ad Science 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.