Correlation Between Integer Holdings and Iradimed
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Iradimed 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 Iradimed 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 Iradimed Co, you can compare the effects of market volatilities on Integer Holdings and Iradimed 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 Iradimed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Iradimed.
Diversification Opportunities for Integer Holdings and Iradimed
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integer and Iradimed is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Iradimed Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iradimed 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 Iradimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iradimed has no effect on the direction of Integer Holdings i.e., Integer Holdings and Iradimed go up and down completely randomly.
Pair Corralation between Integer Holdings and Iradimed
Given the investment horizon of 90 days Integer Holdings is expected to generate 1.7 times less return on investment than Iradimed. But when comparing it to its historical volatility, Integer Holdings Corp is 1.39 times less risky than Iradimed. It trades about 0.32 of its potential returns per unit of risk. Iradimed Co is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 5,407 in Iradimed Co on October 23, 2024 and sell it today you would earn a total of 510.00 from holding Iradimed Co or generate 9.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Iradimed Co
Performance |
| Timeline |
| Integer Holdings Corp |
| Iradimed |
Integer Holdings and Iradimed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Iradimed
The main advantage of trading using opposite Integer Holdings and Iradimed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Iradimed 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 Iradimed will offset losses from the drop in Iradimed's long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Iradimed vs. Pulmonx Corp | Iradimed vs. Orthofix Medical | Iradimed vs. Neuropace | Iradimed vs. Integer Holdings Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Positions Ratings 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 | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |