Correlation Between Integra LifeSciences and Nemaura Medical

Can any of the company-specific risk be diversified away by investing in both Integra LifeSciences and Nemaura 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 Integra LifeSciences and Nemaura Medical 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 Nemaura Medical, you can compare the effects of market volatilities on Integra LifeSciences and Nemaura 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 Integra LifeSciences with a short position of Nemaura Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integra LifeSciences and Nemaura Medical.

Diversification Opportunities for Integra LifeSciences and Nemaura Medical

0.0

Correlation Coefficient

Integra LifeSciences  Nemaura Medical

Pay attention - limited upside

The 3 months correlation between Integra and Nemaura is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Integra LifeSciences Holdings and Nemaura Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nemaura Medical 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 Nemaura Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nemaura Medical has no effect on the direction of Integra LifeSciences i.e., Integra LifeSciences and Nemaura Medical go up and down completely randomly.

Pair Corralation between Integra LifeSciences and Nemaura Medical

If you would invest  2,458  in Integra LifeSciences Holdings on November 29, 2024 and sell it today you would earn a total of  14.00  from holding Integra LifeSciences Holdings or generate 0.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Integra LifeSciences Holdings  vs.  Nemaura Medical

Integra LifeSciences

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Integra LifeSciences Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Integra LifeSciences is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Nemaura Medical

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nemaura Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Nemaura Medical is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Integra LifeSciences and Nemaura Medical

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

The idea behind Integra LifeSciences Holdings and Nemaura Medical 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.