Correlation Between Integer Holdings and Anika Therapeutics
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Anika Therapeutics 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 Anika Therapeutics 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 Anika Therapeutics, you can compare the effects of market volatilities on Integer Holdings and Anika Therapeutics 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 Anika Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Anika Therapeutics.
Diversification Opportunities for Integer Holdings and Anika Therapeutics
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integer and Anika is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Anika Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anika Therapeutics 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 Anika Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anika Therapeutics has no effect on the direction of Integer Holdings i.e., Integer Holdings and Anika Therapeutics go up and down completely randomly.
Pair Corralation between Integer Holdings and Anika Therapeutics
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.73 times more return on investment than Anika Therapeutics. However, Integer Holdings Corp is 1.37 times less risky than Anika Therapeutics. It trades about 0.09 of its potential returns per unit of risk. Anika Therapeutics is currently generating about -0.04 per unit of risk. If you would invest 7,043 in Integer Holdings Corp on November 1, 2024 and sell it today you would earn a total of 7,279 from holding Integer Holdings Corp or generate 103.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Anika Therapeutics
Performance |
| Timeline |
| Integer Holdings Corp |
| Anika Therapeutics |
Integer Holdings and Anika Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Anika Therapeutics
The main advantage of trading using opposite Integer Holdings and Anika Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Anika Therapeutics 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 Anika Therapeutics will offset losses from the drop in Anika Therapeutics' long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Anika Therapeutics vs. Axogen Inc | Anika Therapeutics vs. Orthofix Medical | Anika Therapeutics vs. SurModics | Anika Therapeutics vs. Paragon 28 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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