Correlation Between Integer Holdings and GeneDx Holdings
Can any of the company-specific risk be diversified away by investing in both Integer Holdings and GeneDx Holdings 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 GeneDx Holdings 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 GeneDx Holdings Corp, you can compare the effects of market volatilities on Integer Holdings and GeneDx Holdings 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 GeneDx Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and GeneDx Holdings.
Diversification Opportunities for Integer Holdings and GeneDx Holdings
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Integer and GeneDx is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and GeneDx Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GeneDx Holdings Corp 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 GeneDx Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GeneDx Holdings Corp has no effect on the direction of Integer Holdings i.e., Integer Holdings and GeneDx Holdings go up and down completely randomly.
Pair Corralation between Integer Holdings and GeneDx Holdings
Given the investment horizon of 90 days Integer Holdings is expected to generate 9.19 times less return on investment than GeneDx Holdings. But when comparing it to its historical volatility, Integer Holdings Corp is 3.73 times less risky than GeneDx Holdings. It trades about 0.08 of its potential returns per unit of risk. GeneDx Holdings Corp is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,145 in GeneDx Holdings Corp on August 30, 2024 and sell it today you would earn a total of 5,798 from holding GeneDx Holdings Corp or generate 270.3% 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. GeneDx Holdings Corp
Performance |
| Timeline |
| Integer Holdings Corp |
| GeneDx Holdings Corp |
Integer Holdings and GeneDx Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integer Holdings and GeneDx Holdings
The main advantage of trading using opposite Integer Holdings and GeneDx Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, GeneDx Holdings 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 GeneDx Holdings will offset losses from the drop in GeneDx Holdings' long position.| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx Corp |
| GeneDx Holdings vs. Privia Health Group | GeneDx Holdings vs. HealthStream | GeneDx Holdings vs. Certara | GeneDx Holdings vs. National Research 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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