Correlation Between Fulgent Genetics and Integer Holdings

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

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

Diversification Opportunities for Fulgent Genetics and Integer Holdings

-0.51

Correlation Coefficient

Fulgent Genetics  Integer Holdings

Excellent diversification

The 3 months correlation between Fulgent and Integer is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Fulgent Genetics 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 Fulgent Genetics 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 Fulgent Genetics 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 Fulgent Genetics i.e., Fulgent Genetics and Integer Holdings go up and down completely randomly.

Pair Corralation between Fulgent Genetics and Integer Holdings

Given the investment horizon of 90 days Fulgent Genetics is expected to under-perform the Integer Holdings. In addition to that, Fulgent Genetics is 1.88 times more volatile than Integer Holdings Corp. It trades about -0.03 of its total potential returns per unit of risk. Integer Holdings Corp is currently generating about 0.11 per unit of volatility. If you would invest  12,617  in Integer Holdings Corp on September 12, 2024 and sell it today you would earn a total of  1,347  from holding Integer Holdings Corp or generate 10.68% return on investment over 90 days.

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

Fulgent Genetics  vs.  Integer Holdings Corp

Fulgent Genetics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fulgent Genetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Fulgent Genetics is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Integer Holdings Corp

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady technical and fundamental indicators, Integer Holdings may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Fulgent Genetics and Integer Holdings

The main advantage of trading using opposite Fulgent Genetics and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fulgent Genetics 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 Fulgent Genetics 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.