Correlation Between Integer Holdings and Helius Medical
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Helius Medical 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 Helius Medical 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 Helius Medical Technologies, you can compare the effects of market volatilities on Integer Holdings and Helius Medical 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 Helius Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Helius Medical.
Diversification Opportunities for Integer Holdings and Helius Medical
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integer and Helius is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Helius Medical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helius Medical Techn 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 Helius Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helius Medical Techn has no effect on the direction of Integer Holdings i.e., Integer Holdings and Helius Medical go up and down completely randomly.
Pair Corralation between Integer Holdings and Helius Medical
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.34 times more return on investment than Helius Medical. However, Integer Holdings Corp is 2.97 times less risky than Helius Medical. It trades about 0.2 of its potential returns per unit of risk. Helius Medical Technologies is currently generating about 0.04 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 1,085 from holding Integer Holdings Corp or generate 8.48% 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. Helius Medical Technologies
Performance |
| Timeline |
| Integer Holdings Corp |
| Helius Medical Techn |
Integer Holdings and Helius Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Helius Medical
The main advantage of trading using opposite Integer Holdings and Helius Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Helius Medical 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 Helius Medical will offset losses from the drop in Helius Medical's long position.The idea behind Integer Holdings Corp and Helius Medical Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Helius Medical vs. Nuwellis | Helius Medical vs. ReShape Lifesciences | Helius Medical vs. Bone Biologics Corp | Helius Medical vs. SINTX Technologies |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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