Correlation Between CochLear and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both CochLear 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 CochLear and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CochLear Ltd ADR and Integer Holdings Corp, you can compare the effects of market volatilities on CochLear 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 CochLear with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CochLear and Integer Holdings.
Diversification Opportunities for CochLear and Integer Holdings
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CochLear and Integer is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CochLear Ltd ADR 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 CochLear 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 CochLear Ltd ADR 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 CochLear i.e., CochLear and Integer Holdings go up and down completely randomly.
Pair Corralation between CochLear and Integer Holdings
Assuming the 90 days horizon CochLear is expected to generate 1.07 times less return on investment than Integer Holdings. In addition to that, CochLear is 1.41 times more volatile than Integer Holdings Corp. It trades about 0.15 of its total potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.23 per unit of volatility. If you would invest 13,312 in Integer Holdings Corp on November 9, 2024 and sell it today you would earn a total of 779.00 from holding Integer Holdings Corp or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CochLear Ltd ADR vs. Integer Holdings Corp
Performance |
| Timeline |
| CochLear ADR |
| Integer Holdings Corp |
CochLear and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CochLear and Integer Holdings
The main advantage of trading using opposite CochLear and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CochLear 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.| CochLear vs. Smith Nephew SNATS | CochLear vs. Integer Holdings Corp | CochLear vs. Demant AS ADR | CochLear vs. GN Store Nord |
| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |