Correlation Between Marchex and Integral

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

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

Diversification Opportunities for Marchex and Integral

0.67

Correlation Coefficient

Marchex  Integral

Poor diversification

The 3 months correlation between Marchex and Integral is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Marchex 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 Marchex 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 Marchex 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 Marchex i.e., Marchex and Integral go up and down completely randomly.

Pair Corralation between Marchex and Integral

Given the investment horizon of 90 days Marchex is expected to generate 1.99 times more return on investment than Integral. However, Marchex is 1.99 times more volatile than Integral Ad Science. It trades about 0.14 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.08 per unit of risk. If you would invest  141.00  in Marchex on May 5, 2025 and sell it today you would earn a total of  52.00  from holding Marchex or generate 36.88% return on investment over 90 days.

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

Marchex  vs.  Integral Ad Science

Marchex

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Marchex are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical indicators, Marchex showed solid returns over the last few months and may actually be approaching a breakup point.

Integral Ad Science

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Integral may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Marchex and Integral

The main advantage of trading using opposite Marchex and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marchex 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 Marchex 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..