Correlation Between Aptorum Group and Integer Holdings

Can any of the company-specific risk be diversified away by investing in both Aptorum Group and Integer Holdings 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 Aptorum Group and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Aptorum Group Ltd and Integer Holdings Corp, you can compare the effects of market volatilities on Aptorum Group and Integer Holdings 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 Aptorum Group with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aptorum Group and Integer Holdings.

Diversification Opportunities for Aptorum Group and Integer Holdings

-0.66

Correlation Coefficient

Aptorum Group  Integer Holdings

Excellent diversification

The 3 months correlation between Aptorum and Integer is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Aptorum Group Ltd and Integer Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integer Holdings Corp and Aptorum Group 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 Aptorum Group Ltd are associated (or correlated) with Integer Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integer Holdings Corp has no effect on the direction of Aptorum Group i.e., Aptorum Group and Integer Holdings go up and down completely randomly.

Pair Corralation between Aptorum Group and Integer Holdings

Considering the 90-day investment horizon Aptorum Group Ltd is expected to generate 14.19 times more return on investment than Integer Holdings. However, Aptorum Group is 14.19 times more volatile than Integer Holdings Corp. It trades about 0.13 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.07 per unit of risk. If you would invest  136.00  in Aptorum Group Ltd on October 6, 2024 and sell it today you would earn a total of  78.00  from holding Aptorum Group Ltd or generate 57.35% return on investment over 90 days.

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

Aptorum Group Ltd  vs.  Integer Holdings Corp

Aptorum Group

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Aptorum Group Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Aptorum Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Integer Holdings Corp

Risk-Adjusted Performance

3 of 100

Insignificant

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 latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Aptorum Group and Integer Holdings

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

The idea behind Aptorum Group Ltd and Integer Holdings Corp 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.