Correlation Between Shockwave Medical and Integra LifeSciences
Can any of the company-specific risk be diversified away by investing in both Shockwave Medical and Integra LifeSciences 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 Shockwave Medical and Integra LifeSciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shockwave Medical and Integra LifeSciences Holdings, you can compare the effects of market volatilities on Shockwave Medical and Integra LifeSciences 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 Shockwave Medical with a short position of Integra LifeSciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shockwave Medical and Integra LifeSciences.
Diversification Opportunities for Shockwave Medical and Integra LifeSciences
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Shockwave and Integra is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Shockwave Medical and Integra LifeSciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra LifeSciences and Shockwave Medical 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 Shockwave Medical are associated (or correlated) with Integra LifeSciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra LifeSciences has no effect on the direction of Shockwave Medical i.e., Shockwave Medical and Integra LifeSciences go up and down completely randomly.
Pair Corralation between Shockwave Medical and Integra LifeSciences
If you would invest 1,932 in Integra LifeSciences Holdings on August 28, 2024 and sell it today you would earn a total of 492.00 from holding Integra LifeSciences Holdings or generate 25.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Shockwave Medical vs. Integra LifeSciences Holdings
Performance |
| Timeline |
| Shockwave Medical |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Integra LifeSciences |
Shockwave Medical and Integra LifeSciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shockwave Medical and Integra LifeSciences
The main advantage of trading using opposite Shockwave Medical and Integra LifeSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shockwave Medical position performs unexpectedly, Integra LifeSciences 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 Integra LifeSciences will offset losses from the drop in Integra LifeSciences' long position.| Shockwave Medical vs. Inari Medical | Shockwave Medical vs. Outset Medical | Shockwave Medical vs. Clearpoint Neuro | Shockwave Medical vs. Inspire Medical Systems |
| Integra LifeSciences vs. ICU Medical | Integra LifeSciences vs. CONMED | Integra LifeSciences vs. Haemonetics | Integra LifeSciences vs. Merit Medical Systems |
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..
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |