Correlation Between Integer Holdings and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and EDAP TMS 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 EDAP TMS 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 EDAP TMS SA, you can compare the effects of market volatilities on Integer Holdings and EDAP TMS 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 EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and EDAP TMS.
Diversification Opportunities for Integer Holdings and EDAP TMS
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integer and EDAP is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA 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 EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Integer Holdings i.e., Integer Holdings and EDAP TMS go up and down completely randomly.
Pair Corralation between Integer Holdings and EDAP TMS
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.66 times more return on investment than EDAP TMS. However, Integer Holdings Corp is 1.52 times less risky than EDAP TMS. It trades about 0.23 of its potential returns per unit of risk. EDAP TMS SA is currently generating about -0.24 per unit of risk. If you would invest 12,793 in Integer Holdings Corp on August 28, 2024 and sell it today you would earn a total of 1,235 from holding Integer Holdings Corp or generate 9.65% 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. EDAP TMS SA
Performance |
| Timeline |
| Integer Holdings Corp |
| EDAP TMS SA |
Integer Holdings and EDAP TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and EDAP TMS
The main advantage of trading using opposite Integer Holdings and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.| Integer Holdings vs. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
| EDAP TMS vs. Patterson Companies | EDAP TMS vs. Henry Schein | EDAP TMS vs. McKesson | EDAP TMS vs. Cardinal Health |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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