Correlation Between CVRx and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both CVRx 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 CVRx and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVRx Inc and Integer Holdings Corp, you can compare the effects of market volatilities on CVRx 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 CVRx with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVRx and Integer Holdings.
Diversification Opportunities for CVRx and Integer Holdings
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CVRx and Integer is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding CVRx Inc 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 CVRx 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 CVRx Inc 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 CVRx i.e., CVRx and Integer Holdings go up and down completely randomly.
Pair Corralation between CVRx and Integer Holdings
Given the investment horizon of 90 days CVRx Inc is expected to generate 4.08 times more return on investment than Integer Holdings. However, CVRx is 4.08 times more volatile than Integer Holdings Corp. It trades about 0.23 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.19 per unit of risk. If you would invest 1,074 in CVRx Inc on August 30, 2024 and sell it today you would earn a total of 456.00 from holding CVRx Inc or generate 42.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVRx Inc vs. Integer Holdings Corp
Performance |
| Timeline |
| CVRx Inc |
| Integer Holdings Corp |
CVRx and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVRx and Integer Holdings
The main advantage of trading using opposite CVRx and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVRx 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 CVRx Inc 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.| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |