Correlation Between Integer Holdings and Koninklijke Philips
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Koninklijke Philips 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 Koninklijke Philips 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 Koninklijke Philips NV, you can compare the effects of market volatilities on Integer Holdings and Koninklijke Philips 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 Koninklijke Philips. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Koninklijke Philips.
Diversification Opportunities for Integer Holdings and Koninklijke Philips
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Integer and Koninklijke is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Koninklijke Philips NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koninklijke Philips 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 Koninklijke Philips. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koninklijke Philips has no effect on the direction of Integer Holdings i.e., Integer Holdings and Koninklijke Philips go up and down completely randomly.
Pair Corralation between Integer Holdings and Koninklijke Philips
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 1.17 times more return on investment than Koninklijke Philips. However, Integer Holdings is 1.17 times more volatile than Koninklijke Philips NV. It trades about 0.19 of its potential returns per unit of risk. Koninklijke Philips NV is currently generating about 0.04 per unit of risk. If you would invest 13,010 in Integer Holdings Corp on August 30, 2024 and sell it today you would earn a total of 1,070 from holding Integer Holdings Corp or generate 8.22% 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. Koninklijke Philips NV
Performance |
| Timeline |
| Integer Holdings Corp |
| Koninklijke Philips |
Integer Holdings and Koninklijke Philips Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Koninklijke Philips
The main advantage of trading using opposite Integer Holdings and Koninklijke Philips positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Koninklijke Philips 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 Koninklijke Philips will offset losses from the drop in Koninklijke Philips' long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| Koninklijke Philips vs. ZimVie Inc | Koninklijke Philips vs. Stryker | Koninklijke Philips vs. Boston Scientific Corp | Koninklijke Philips vs. STERIS plc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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