Correlation Between Zedge and Integral

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

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

Diversification Opportunities for Zedge and Integral

0.13

Correlation Coefficient

Zedge  Integral

Average diversification

The 3 months correlation between Zedge and Integral is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc 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 Zedge 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 Zedge Inc 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 Zedge i.e., Zedge and Integral go up and down completely randomly.

Pair Corralation between Zedge and Integral

Given the investment horizon of 90 days Zedge Inc is expected to generate 3.3 times more return on investment than Integral. However, Zedge is 3.3 times more volatile than Integral Ad Science. It trades about 0.01 of its potential returns per unit of risk. Integral Ad Science is currently generating about -0.06 per unit of risk. If you would invest  262.00  in Zedge Inc on December 1, 2024 and sell it today you would lose (18.00) from holding Zedge Inc or give up 6.87% of portfolio value over 90 days.

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

Zedge Inc  vs.  Integral Ad Science

Zedge Inc

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Zedge Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, Zedge may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Zedge and Integral

The main advantage of trading using opposite Zedge and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge 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 Zedge Inc 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.