Correlation Between Interface and Integral

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

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

Diversification Opportunities for Interface and Integral

0.83

Correlation Coefficient

Interface  Integral

Very poor diversification

The 3 months correlation between Interface and Integral is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Interface 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 Interface 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 Interface 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 Interface i.e., Interface and Integral go up and down completely randomly.

Pair Corralation between Interface and Integral

Given the investment horizon of 90 days Interface is expected to generate 1.56 times less return on investment than Integral. But when comparing it to its historical volatility, Interface is 1.01 times less risky than Integral. It trades about 0.1 of its potential returns per unit of risk. Integral Ad Science is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  722.00  in Integral Ad Science on April 29, 2025 and sell it today you would earn a total of  125.00  from holding Integral Ad Science or generate 17.31% return on investment over 90 days.

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

Interface  vs.  Integral Ad Science

Interface

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Interface are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting essential indicators, Interface may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Integral Ad Science

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Integral Ad Science are ranked lower than 11 (%) 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 Interface and Integral

The main advantage of trading using opposite Interface and Integral positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interface 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 Interface 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.