Correlation Between Bruker and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Bruker and Integer Holdings 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 Bruker and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bruker and Integer Holdings Corp, you can compare the effects of market volatilities on Bruker and Integer Holdings 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 Bruker with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bruker and Integer Holdings.
Diversification Opportunities for Bruker and Integer Holdings
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bruker and Integer is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Bruker and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp and Bruker 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 Bruker are associated (or correlated) with Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Bruker i.e., Bruker and Integer Holdings go up and down completely randomly.
Pair Corralation between Bruker and Integer Holdings
Given the investment horizon of 90 days Bruker is expected to under-perform the Integer Holdings. In addition to that, Bruker is 1.17 times more volatile than Integer Holdings Corp. It trades about 0.0 of its total potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.09 per unit of volatility. If you would invest 6,897 in Integer Holdings Corp on August 28, 2024 and sell it today you would earn a total of 7,131 from holding Integer Holdings Corp or generate 103.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bruker vs. Integer Holdings Corp
Performance |
| Timeline |
| Bruker |
| Integer Holdings Corp |
Bruker and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bruker and Integer Holdings
The main advantage of trading using opposite Bruker and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bruker position performs unexpectedly, Integer Holdings 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 Integer Holdings will offset losses from the drop in Integer Holdings' long position.The idea behind Bruker and Integer Holdings Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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