Correlation Between Solaris Resources and Integral

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

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

Diversification Opportunities for Solaris Resources and Integral

0.5

Correlation Coefficient

Solaris Resources  Integral

Very weak diversification

The 3 months correlation between Solaris and Integral is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Solaris Resources 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 Solaris Resources 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 Solaris Resources 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 Solaris Resources i.e., Solaris Resources and Integral go up and down completely randomly.

Pair Corralation between Solaris Resources and Integral

Given the investment horizon of 90 days Solaris Resources is expected to generate 1.51 times more return on investment than Integral. However, Solaris Resources is 1.51 times more volatile than Integral Ad Science. It trades about 0.19 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.09 per unit of risk. If you would invest  384.00  in Solaris Resources on May 18, 2025 and sell it today you would earn a total of  181.00  from holding Solaris Resources or generate 47.14% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Solaris Resources  vs.  Integral Ad Science

Solaris Resources

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Solaris Resources are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Solaris Resources reported solid returns over the last few months and may actually be approaching a breakup point.

Integral Ad Science

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Integral unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Solaris Resources and Integral

The main advantage of trading using opposite Solaris Resources and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solaris Resources 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 Solaris Resources 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.