Correlation Between Integer Holdings and Integra LifeSciences

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

Diversification Opportunities for Integer Holdings and Integra LifeSciences

-0.06

Correlation Coefficient

Integer Holdings  Integra LifeSciences

Good diversification

The 3 months correlation between Integer and Integra is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Integra LifeSciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra LifeSciences 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 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 Integer Holdings i.e., Integer Holdings and Integra LifeSciences go up and down completely randomly.

Pair Corralation between Integer Holdings and Integra LifeSciences

Given the investment horizon of 90 days Integer Holdings Corp is expected to generate 0.92 times more return on investment than Integra LifeSciences. However, Integer Holdings Corp is 1.09 times less risky than Integra LifeSciences. It trades about 0.06 of its potential returns per unit of risk. Integra LifeSciences Holdings is currently generating about -0.04 per unit of risk. If you would invest  6,884  in Integer Holdings Corp on March 12, 2024 and sell it today you would earn a total of  5,227  from holding Integer Holdings Corp or generate 75.93% return on investment over 90 days.

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

Integer Holdings Corp  vs.  Integra LifeSciences Holdings

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 abnormal technical and fundamental indicators, Integer Holdings may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Integra LifeSciences

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Integra LifeSciences Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Integer Holdings and Integra LifeSciences

The main advantage of trading using opposite Integer Holdings and Integra LifeSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integer Holdings 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.

The idea behind Integer Holdings Corp and Integra LifeSciences Holdings 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.

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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 Stocks Directory module to find actively traded stocks across global markets.