Correlation Between Integra LifeSciences and OpGen

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

Diversification Opportunities for Integra LifeSciences and OpGen

-0.33

Correlation Coefficient

Integra LifeSciences  OpGen

Very good diversification

The 3 months correlation between Integra and OpGen is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and OpGen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpGen Inc 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 OpGen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpGen Inc has no effect on the direction of Integra LifeSciences i.e., Integra LifeSciences and OpGen go up and down completely randomly.

Pair Corralation between Integra LifeSciences and OpGen

If you would invest  1,732  in Integra LifeSciences Holdings on September 14, 2024 and sell it today you would earn a total of  692.00  from holding Integra LifeSciences Holdings or generate 39.95% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Integra LifeSciences Holdings  vs.  OpGen Inc

Integra LifeSciences

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Integra LifeSciences Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Integra LifeSciences unveiled solid returns over the last few months and may actually be approaching a breakup point.

OpGen Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OpGen Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, OpGen is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Integra LifeSciences and OpGen

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

The idea behind Integra LifeSciences Holdings and OpGen Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.