Correlation Between Integer Holdings and Artivion

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

Diversification Opportunities for Integer Holdings and Artivion

0.78

Correlation Coefficient

Integer Holdings  Artivion

Poor diversification

The 3 months correlation between Integer and Artivion is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Artivion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Artivion 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 Artivion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Artivion has no effect on the direction of Integer Holdings i.e., Integer Holdings and Artivion go up and down completely randomly.

Pair Corralation between Integer Holdings and Artivion

Given the investment horizon of 90 days Integer Holdings is expected to generate 2.46 times less return on investment than Artivion. But when comparing it to its historical volatility, Integer Holdings Corp is 1.09 times less risky than Artivion. It trades about 0.05 of its potential returns per unit of risk. Artivion is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,662  in Artivion on September 28, 2024 and sell it today you would earn a total of  272.00  from holding Artivion or generate 10.22% return on investment over 90 days.

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

Integer Holdings Corp  vs.  Artivion

Integer Holdings Corp

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Integer Holdings is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Artivion

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Artivion are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Artivion may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Integer Holdings and Artivion

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

The idea behind Integer Holdings Corp and Artivion 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.