Correlation Between Integra LifeSciences and Inspire Medical
Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences and Inspire Medical 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 Integra LifeSciences and Inspire Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra LifeSciences Holdings and Inspire Medical Systems, you can compare the effects of market volatilities on Integra LifeSciences and Inspire Medical 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 Integra LifeSciences with a short position of Inspire Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and Inspire Medical.
Diversification Opportunities for Integra LifeSciences and Inspire Medical
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Integra and Inspire is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and Inspire Medical Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspire Medical Systems and Integra LifeSciences 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 Integra LifeSciences Holdings are associated (or correlated) with Inspire Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspire Medical Systems has no effect on the direction of Integra LifeSciences i.e., Integra LifeSciences and Inspire Medical go up and down completely randomly.
Pair Corralation between Integra LifeSciences and Inspire Medical
Given the investment horizon of 90 days Integra LifeSciences Holdings is expected to generate 1.93 times more return on investment than Inspire Medical. However, Integra LifeSciences is 1.93 times more volatile than Inspire Medical Systems. It trades about 0.18 of its potential returns per unit of risk. Inspire Medical Systems is currently generating about -0.01 per unit of risk. If you would invest 1,911 in Integra LifeSciences Holdings on August 24, 2024 and sell it today you would earn a total of 447.00 from holding Integra LifeSciences Holdings or generate 23.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integra LifeSciences Holdings vs. Inspire Medical Systems
Performance |
| Timeline |
| Integra LifeSciences |
| Inspire Medical Systems |
Integra LifeSciences and Inspire Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra LifeSciences and Inspire Medical
The main advantage of trading using opposite Integra LifeSciences and Inspire Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra LifeSciences position performs unexpectedly, Inspire Medical 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 Inspire Medical will offset losses from the drop in Inspire Medical's long position.| Integra LifeSciences vs. ICU Medical | Integra LifeSciences vs. CONMED | Integra LifeSciences vs. Haemonetics | Integra LifeSciences vs. Merit Medical Systems |
| Inspire Medical vs. TransMedics Group | Inspire Medical vs. Inari Medical | Inspire Medical vs. InMode | Inspire Medical vs. Insulet |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |