Correlation Between Evolent Health and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Evolent Health 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 Evolent Health and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and Integer Holdings Corp, you can compare the effects of market volatilities on Evolent Health 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 Evolent Health with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and Integer Holdings.
Diversification Opportunities for Evolent Health and Integer Holdings
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evolent and Integer is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health 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 Evolent Health 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 Evolent Health 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 Evolent Health i.e., Evolent Health and Integer Holdings go up and down completely randomly.
Pair Corralation between Evolent Health and Integer Holdings
Considering the 90-day investment horizon Evolent Health is expected to under-perform the Integer Holdings. In addition to that, Evolent Health is 4.12 times more volatile than Integer Holdings Corp. It trades about -0.06 of its total potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.47 per unit of volatility. If you would invest 13,252 in Integer Holdings Corp on November 1, 2024 and sell it today you would earn a total of 1,226 from holding Integer Holdings Corp or generate 9.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. Integer Holdings Corp
Performance |
| Timeline |
| Evolent Health |
| Integer Holdings Corp |
Evolent Health and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and Integer Holdings
The main advantage of trading using opposite Evolent Health and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health 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.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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