Correlation Between Figs and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Figs 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 Figs and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Figs Inc and Integer Holdings Corp, you can compare the effects of market volatilities on Figs 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 Figs with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Figs and Integer Holdings.
Diversification Opportunities for Figs and Integer Holdings
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Figs and Integer is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Figs 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 Figs 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 Figs 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 Figs i.e., Figs and Integer Holdings go up and down completely randomly.
Pair Corralation between Figs and Integer Holdings
Given the investment horizon of 90 days Figs Inc is expected to under-perform the Integer Holdings. In addition to that, Figs is 3.43 times more volatile than Integer Holdings Corp. It trades about -0.17 of its total potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.2 per unit of volatility. If you would invest 12,793 in Integer Holdings Corp on August 27, 2024 and sell it today you would earn a total of 1,018 from holding Integer Holdings Corp or generate 7.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Figs Inc vs. Integer Holdings Corp
Performance |
| Timeline |
| Figs Inc |
| Integer Holdings Corp |
Figs and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Figs and Integer Holdings
The main advantage of trading using opposite Figs and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Figs 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 Figs 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. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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