Correlation Between Integer Holdings and Smith Nephew
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Smith Nephew 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 Smith Nephew 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 Smith Nephew SNATS, you can compare the effects of market volatilities on Integer Holdings and Smith Nephew 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 Smith Nephew. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Smith Nephew.
Diversification Opportunities for Integer Holdings and Smith Nephew
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Integer and Smith is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Smith Nephew SNATS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smith Nephew SNATS 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 Smith Nephew. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smith Nephew SNATS has no effect on the direction of Integer Holdings i.e., Integer Holdings and Smith Nephew go up and down completely randomly.
Pair Corralation between Integer Holdings and Smith Nephew
Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 1.27 times more return on investment than Smith Nephew. However, Integer Holdings is 1.27 times more volatile than Smith Nephew SNATS. It trades about 0.08 of its potential returns per unit of risk. Smith Nephew SNATS is currently generating about 0.01 per unit of risk. If you would invest 7,185 in Integer Holdings Corp on August 28, 2024 and sell it today you would earn a total of 6,843 from holding Integer Holdings Corp or generate 95.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integer Holdings Corp vs. Smith Nephew SNATS
Performance |
| Timeline |
| Integer Holdings Corp |
| Smith Nephew SNATS |
Integer Holdings and Smith Nephew Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and Smith Nephew
The main advantage of trading using opposite Integer Holdings and Smith Nephew positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Smith Nephew 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 Smith Nephew will offset losses from the drop in Smith Nephew's long position.| Integer Holdings vs. Heartbeam | Integer Holdings vs. EUDA Health Holdings | Integer Holdings vs. Nutex Health | Integer Holdings vs. Healthcare Triangle |
| Smith Nephew vs. CochLear Ltd ADR | Smith Nephew vs. Integer Holdings Corp | Smith Nephew vs. Orthofix Medical | Smith Nephew vs. Glaukos 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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