Correlation Between Integer Holdings and Guided Therapeutics
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Guided 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 Guided 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 Guided Therapeutics, you can compare the effects of market volatilities on Integer Holdings and Guided 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 Guided Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Guided Therapeutics.
Diversification Opportunities for Integer Holdings and Guided Therapeutics
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Integer and Guided is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Guided Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guided 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 Guided Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guided Therapeutics has no effect on the direction of Integer Holdings i.e., Integer Holdings and Guided Therapeutics go up and down completely randomly.
Pair Corralation between Integer Holdings and Guided Therapeutics
Given the investment horizon of 90 days Integer Holdings is expected to generate 12.18 times less return on investment than Guided Therapeutics. But when comparing it to its historical volatility, Integer Holdings Corp is 9.21 times less risky than Guided Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Guided Therapeutics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10.00 in Guided Therapeutics on September 3, 2024 and sell it today you would earn a total of 6.00 from holding Guided Therapeutics or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Guided Therapeutics
Performance |
| Timeline |
| Integer Holdings Corp |
| Guided Therapeutics |
Integer Holdings and Guided Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Guided Therapeutics
The main advantage of trading using opposite Integer Holdings and Guided Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Guided 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 Guided Therapeutics will offset losses from the drop in Guided Therapeutics' long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Guided Therapeutics vs. Artivion | Guided Therapeutics vs. Anika Therapeutics | Guided Therapeutics vs. Sight Sciences | Guided Therapeutics vs. Orthofix Medical |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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