Correlation Between Laboratory and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Laboratory and Integer 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 Laboratory and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Laboratory of and Integer Holdings Corp, you can compare the effects of market volatilities on Laboratory and Integer 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 Laboratory with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Laboratory and Integer Holdings.
Diversification Opportunities for Laboratory and Integer Holdings
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Laboratory and Integer is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Laboratory of and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp and Laboratory 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 Laboratory of are associated (or correlated) with Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Laboratory i.e., Laboratory and Integer Holdings go up and down completely randomly.
Pair Corralation between Laboratory and Integer Holdings
Allowing for the 90-day total investment horizon Laboratory of is expected to generate 0.49 times more return on investment than Integer Holdings. However, Laboratory of is 2.03 times less risky than Integer Holdings. It trades about 0.07 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about -0.28 per unit of risk. If you would invest 24,967 in Laboratory of on November 28, 2024 and sell it today you would earn a total of 320.00 from holding Laboratory of or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Laboratory of vs. Integer Holdings Corp
Performance |
| Timeline |
| Laboratory |
| Integer Holdings Corp |
Laboratory and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Laboratory and Integer Holdings
The main advantage of trading using opposite Laboratory and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Laboratory position performs unexpectedly, Integer 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 Integer Holdings will offset losses from the drop in Integer Holdings' long position.| Laboratory vs. Quest Diagnostics Incorporated | Laboratory vs. Waters | Laboratory vs. Universal Health Services | Laboratory vs. Humana Inc |
| Integer Holdings vs. CONMED | Integer Holdings vs. LivaNova PLC | Integer Holdings vs. iRhythm Technologies | Integer Holdings vs. Pulmonx 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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