Correlation Between Integer Holdings and IDEXX Laboratories
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and IDEXX Laboratories 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 IDEXX Laboratories 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 IDEXX Laboratories, you can compare the effects of market volatilities on Integer Holdings and IDEXX Laboratories 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 IDEXX Laboratories. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and IDEXX Laboratories.
Diversification Opportunities for Integer Holdings and IDEXX Laboratories
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Integer and IDEXX is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and IDEXX Laboratories in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IDEXX Laboratories 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 IDEXX Laboratories. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IDEXX Laboratories has no effect on the direction of Integer Holdings i.e., Integer Holdings and IDEXX Laboratories go up and down completely randomly.
Pair Corralation between Integer Holdings and IDEXX Laboratories
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.82 times more return on investment than IDEXX Laboratories. However, Integer Holdings Corp is 1.22 times less risky than IDEXX Laboratories. It trades about 0.19 of its potential returns per unit of risk. IDEXX Laboratories is currently generating about -0.14 per unit of risk. If you would invest 12,577 in Integer Holdings Corp on August 26, 2024 and sell it today you would earn a total of 1,011 from holding Integer Holdings Corp or generate 8.04% 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. IDEXX Laboratories
Performance |
| Timeline |
| Integer Holdings Corp |
| IDEXX Laboratories |
Integer Holdings and IDEXX Laboratories Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and IDEXX Laboratories
The main advantage of trading using opposite Integer Holdings and IDEXX Laboratories positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, IDEXX Laboratories 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 IDEXX Laboratories will offset losses from the drop in IDEXX Laboratories' long position.| Integer Holdings vs. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
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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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