Correlation Between Integer Holdings and Treace Medical

Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Treace Medical 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 Treace Medical 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 Treace Medical Concepts, you can compare the effects of market volatilities on Integer Holdings and Treace Medical 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 Treace Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Treace Medical.

Diversification Opportunities for Integer Holdings and Treace Medical

-0.46

Correlation Coefficient

Integer Holdings  Treace Medical

Very good diversification

The 3 months correlation between Integer and Treace is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Treace Medical Concepts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treace Medical Concepts 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 Treace Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treace Medical Concepts has no effect on the direction of Integer Holdings i.e., Integer Holdings and Treace Medical go up and down completely randomly.

Pair Corralation between Integer Holdings and Treace Medical

Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.23 times more return on investment than Treace Medical. However, Integer Holdings Corp is 4.44 times less risky than Treace Medical. It trades about 0.06 of its potential returns per unit of risk. Treace Medical Concepts is currently generating about -0.08 per unit of risk. If you would invest  11,319  in Integer Holdings Corp on March 4, 2024 and sell it today you would earn a total of  805.00  from holding Integer Holdings Corp or generate 7.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Integer Holdings Corp  vs.  Treace Medical Concepts

Integer Holdings Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Integer Holdings may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Treace Medical Concepts

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Treace Medical Concepts has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in July 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Integer Holdings and Treace Medical

The main advantage of trading using opposite Integer Holdings and Treace Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings position performs unexpectedly, Treace Medical 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 Treace Medical will offset losses from the drop in Treace Medical's long position.

The idea behind Integer Holdings Corp and Treace Medical Concepts pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.