Correlation Between Envista Holdings and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Envista Holdings and ICU Medical 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 Envista Holdings and ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Envista Holdings Corp and ICU Medical, you can compare the effects of market volatilities on Envista Holdings and ICU Medical 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 Envista Holdings with a short position of ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Envista Holdings and ICU Medical.
Diversification Opportunities for Envista Holdings and ICU Medical
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Envista and ICU is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Envista Holdings Corp and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical and Envista 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 Envista Holdings Corp are associated (or correlated) with ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Envista Holdings i.e., Envista Holdings and ICU Medical go up and down completely randomly.
Pair Corralation between Envista Holdings and ICU Medical
Given the investment horizon of 90 days Envista Holdings Corp is expected to generate 0.87 times more return on investment than ICU Medical. However, Envista Holdings Corp is 1.15 times less risky than ICU Medical. It trades about 0.08 of its potential returns per unit of risk. ICU Medical is currently generating about -0.01 per unit of risk. If you would invest 1,914 in Envista Holdings Corp on June 10, 2025 and sell it today you would earn a total of 217.00 from holding Envista Holdings Corp or generate 11.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Envista Holdings Corp vs. ICU Medical
Performance |
| Timeline |
| Envista Holdings Corp |
| ICU Medical |
Envista Holdings and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Envista Holdings and ICU Medical
The main advantage of trading using opposite Envista Holdings and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Envista Holdings position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Envista Holdings vs. Dentsply Sirona | Envista Holdings vs. Merit Medical Systems | Envista Holdings vs. ICU Medical | Envista Holdings vs. The Cooper Companies, |
| ICU Medical vs. Nexgel Inc | ICU Medical vs. Predictive Oncology | ICU Medical vs. Pro Dex | ICU Medical vs. Aclarion |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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