Correlation Between Integra LifeSciences and 908 Devices
Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences and 908 Devices 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 908 Devices 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 908 Devices, you can compare the effects of market volatilities on Integra LifeSciences and 908 Devices 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 908 Devices. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and 908 Devices.
Diversification Opportunities for Integra LifeSciences and 908 Devices
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Integra and 908 is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and 908 Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 908 Devices 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 908 Devices. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 908 Devices has no effect on the direction of Integra LifeSciences i.e., Integra LifeSciences and 908 Devices go up and down completely randomly.
Pair Corralation between Integra LifeSciences and 908 Devices
Given the investment horizon of 90 days Integra LifeSciences Holdings is expected to under-perform the 908 Devices. But the stock apears to be less risky and, when comparing its historical volatility, Integra LifeSciences Holdings is 1.12 times less risky than 908 Devices. The stock trades about -0.07 of its potential returns per unit of risk. The 908 Devices is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 523.00 in 908 Devices on April 24, 2025 and sell it today you would earn a total of 200.00 from holding 908 Devices or generate 38.24% 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. 908 Devices
Performance |
| Timeline |
| Integra LifeSciences |
| 908 Devices |
Integra LifeSciences and 908 Devices Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integra LifeSciences and 908 Devices
The main advantage of trading using opposite Integra LifeSciences and 908 Devices positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integra LifeSciences position performs unexpectedly, 908 Devices 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 908 Devices will offset losses from the drop in 908 Devices' long position.| Integra LifeSciences vs. CONMED | Integra LifeSciences vs. Orthofix Medical | Integra LifeSciences vs. Integer Holdings Corp | Integra LifeSciences vs. Bruker |
| 908 Devices vs. Integra LifeSciences Holdings | 908 Devices vs. Monogram Orthopaedics Common | 908 Devices vs. Nano X Imaging | 908 Devices vs. Medtronic PLC |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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