Correlation Between FIDELITY and Integral

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

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

Diversification Opportunities for FIDELITY and Integral

0.43

Correlation Coefficient

FIDELITY  Integral

Very weak diversification

The 3 months correlation between FIDELITY and Integral is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding FIDELITY NATIONAL INFORMATION 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 FIDELITY 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 FIDELITY NATIONAL INFORMATION 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 FIDELITY i.e., FIDELITY and Integral go up and down completely randomly.

Pair Corralation between FIDELITY and Integral

Assuming the 90 days trading horizon FIDELITY NATIONAL INFORMATION is expected to under-perform the Integral. But the bond apears to be less risky and, when comparing its historical volatility, FIDELITY NATIONAL INFORMATION is 1.8 times less risky than Integral. The bond trades about -0.1 of its potential returns per unit of risk. The Integral Ad Science is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,024  in Integral Ad Science on October 10, 2024 and sell it today you would lose (52.00) from holding Integral Ad Science or give up 5.08% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	81.97%
Values	Daily Returns

FIDELITY NATIONAL INFORMATION  vs.  Integral Ad Science

FIDELITY NATIONAL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FIDELITY NATIONAL INFORMATION has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for FIDELITY NATIONAL INFORMATION investors.

Integral Ad Science

Risk-Adjusted Performance

0 of 100

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 comparatively stable basic indicators, Integral is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with FIDELITY and Integral

The main advantage of trading using opposite FIDELITY and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDELITY 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 FIDELITY NATIONAL INFORMATION 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.