Correlation Between Integer Holdings and American Medical
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and American 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 Integer Holdings and American Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integer Holdings Corp and American Medical Technologies, you can compare the effects of market volatilities on Integer Holdings and American 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 Integer Holdings with a short position of American Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and American Medical.
Diversification Opportunities for Integer Holdings and American Medical
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integer and American is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and American Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Medical Tec and Integer Holdings 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 Integer Holdings Corp are associated (or correlated) with American Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Medical Tec has no effect on the direction of Integer Holdings i.e., Integer Holdings and American Medical go up and down completely randomly.
Pair Corralation between Integer Holdings and American Medical
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.12 times more return on investment than American Medical. However, Integer Holdings Corp is 8.26 times less risky than American Medical. It trades about 0.08 of its potential returns per unit of risk. American Medical Technologies is currently generating about -0.16 per unit of risk. If you would invest 7,091 in Integer Holdings Corp on September 3, 2024 and sell it today you would earn a total of 6,959 from holding Integer Holdings Corp or generate 98.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 7.88% |
| Values | Daily Returns |
Integer Holdings Corp vs. American Medical Technologies
Performance |
| Timeline |
| Integer Holdings Corp |
| American Medical Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Integer Holdings and American Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and American Medical
The main advantage of trading using opposite Integer Holdings and American Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, American 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 American Medical will offset losses from the drop in American Medical's long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| American Medical vs. Milestone Scientific | American Medical vs. Repro Med Systems | American Medical vs. Akoya Biosciences | American Medical vs. Pro Dex |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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