Correlation Between Medtronic PLC and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Medtronic PLC 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 Medtronic PLC and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medtronic PLC and Integer Holdings Corp, you can compare the effects of market volatilities on Medtronic PLC 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 Medtronic PLC with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medtronic PLC and Integer Holdings.
Diversification Opportunities for Medtronic PLC and Integer Holdings
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Medtronic and Integer is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC 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 Medtronic PLC i.e., Medtronic PLC and Integer Holdings go up and down completely randomly.
Pair Corralation between Medtronic PLC and Integer Holdings
Considering the 90-day investment horizon Medtronic PLC is expected to under-perform the Integer Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Medtronic PLC is 1.38 times less risky than Integer Holdings. The stock trades about -0.15 of its potential returns per unit of risk. The Integer Holdings Corp is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 12,645 in Integer Holdings Corp on September 2, 2024 and sell it today you would earn a total of 1,405 from holding Integer Holdings Corp or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medtronic PLC vs. Integer Holdings Corp
Performance |
| Timeline |
| Medtronic PLC |
| Integer Holdings Corp |
Medtronic PLC and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medtronic PLC and Integer Holdings
The main advantage of trading using opposite Medtronic PLC and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medtronic PLC 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.| Medtronic PLC vs. Edwards Lifesciences Corp | Medtronic PLC vs. Abbott Laboratories | Medtronic PLC vs. Boston Scientific Corp | Medtronic PLC vs. Zimmer Biomet Holdings |
| 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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