Correlation Between Integer Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Integer Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Dow Jones.
Diversification Opportunities for Integer Holdings and Dow Jones
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Integer and Dow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Integer Holdings i.e., Integer Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Integer Holdings and Dow Jones
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 1.99 times more return on investment than Dow Jones. However, Integer Holdings is 1.99 times more volatile than Dow Jones Industrial. It trades about 0.21 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.21 per unit of risk. If you would invest 12,676 in Integer Holdings Corp on August 25, 2024 and sell it today you would earn a total of 1,135 from holding Integer Holdings Corp or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Dow Jones Industrial
Performance |
| Timeline |
Integer Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Integer Holdings Corp
Pair trading matchups for Integer Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Integer Holdings and Dow Jones
The main advantage of trading using opposite Integer Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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