Correlation Between Integer Holdings and Paragon 28
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Paragon 28 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 Paragon 28 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 Paragon 28, you can compare the effects of market volatilities on Integer Holdings and Paragon 28 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 Paragon 28. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Paragon 28.
Diversification Opportunities for Integer Holdings and Paragon 28
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Integer and Paragon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Paragon 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paragon 28 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 Paragon 28. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paragon 28 has no effect on the direction of Integer Holdings i.e., Integer Holdings and Paragon 28 go up and down completely randomly.
Pair Corralation between Integer Holdings and Paragon 28
Given the investment horizon of 90 days Integer Holdings is expected to generate 2.95 times less return on investment than Paragon 28. But when comparing it to its historical volatility, Integer Holdings Corp is 3.89 times less risky than Paragon 28. It trades about 0.1 of its potential returns per unit of risk. Paragon 28 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 817.00 in Paragon 28 on August 28, 2024 and sell it today you would earn a total of 169.00 from holding Paragon 28 or generate 20.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Paragon 28
Performance |
| Timeline |
| Integer Holdings Corp |
| Paragon 28 |
Integer Holdings and Paragon 28 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Paragon 28
The main advantage of trading using opposite Integer Holdings and Paragon 28 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Paragon 28 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 Paragon 28 will offset losses from the drop in Paragon 28's long position.| Integer Holdings vs. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
| Paragon 28 vs. Heartbeam | Paragon 28 vs. EUDA Health Holdings | Paragon 28 vs. Nutex Health | Paragon 28 vs. Healthcare Triangle |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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