Correlation Between Integra LifeSciences and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences and EDAP TMS 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 Integra LifeSciences and EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integra LifeSciences Holdings and EDAP TMS SA, you can compare the effects of market volatilities on Integra LifeSciences and EDAP TMS 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 Integra LifeSciences with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and EDAP TMS.
Diversification Opportunities for Integra LifeSciences and EDAP TMS
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and EDAP is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Integra LifeSciences 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 Integra LifeSciences Holdings are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Integra LifeSciences i.e., Integra LifeSciences and EDAP TMS go up and down completely randomly.
Pair Corralation between Integra LifeSciences and EDAP TMS
Given the investment horizon of 90 days Integra LifeSciences Holdings is expected to under-perform the EDAP TMS. In addition to that, Integra LifeSciences is 1.15 times more volatile than EDAP TMS SA. It trades about -0.19 of its total potential returns per unit of risk. EDAP TMS SA is currently generating about 0.09 per unit of volatility. If you would invest 579.00 in EDAP TMS SA on February 20, 2024 and sell it today you would earn a total of 92.00 from holding EDAP TMS SA or generate 15.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Integra LifeSciences Holdings vs. EDAP TMS SA
Performance |
Timeline |
Integra LifeSciences |
EDAP TMS SA |
Integra LifeSciences and EDAP TMS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Integra LifeSciences and EDAP TMS
The main advantage of trading using opposite Integra LifeSciences and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra LifeSciences position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.Integra LifeSciences vs. Ainos Inc | Integra LifeSciences vs. SurModics | Integra LifeSciences vs. IRIDEX | Integra LifeSciences vs. Rxsight |
EDAP TMS vs. Patterson Companies | EDAP TMS vs. Henry Schein | EDAP TMS vs. McKesson | EDAP TMS vs. Cardinal Health |
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
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
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 |