Correlation Between NYSE Composite and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Integer Holdings Corp, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Integer Holdings.
Diversification Opportunities for NYSE Composite and Integer Holdings
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between NYSE and Integer is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Integer Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Integer Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.26 times less return on investment than Integer Holdings. But when comparing it to its historical volatility, NYSE Composite is 2.44 times less risky than Integer Holdings. It trades about 0.15 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 12,165 in Integer Holdings Corp on August 28, 2024 and sell it today you would earn a total of 1,863 from holding Integer Holdings Corp or generate 15.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Integer Holdings Corp
Performance |
| Timeline |
NYSE Composite and Integer Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Integer Holdings Corp
Pair trading matchups for Integer Holdings
Pair Trading with NYSE Composite and Integer Holdings
The main advantage of trading using opposite NYSE Composite and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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