Correlation Between Integer Holdings and Adapthealth Corp

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

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

Diversification Opportunities for Integer Holdings and Adapthealth Corp

-0.17

Correlation Coefficient

Integer Holdings  Adapthealth Corp

Good diversification

The 3 months correlation between Integer and Adapthealth is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Adapthealth Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Adapthealth Corp and Integer 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 Integer Holdings Corp are associated (or correlated) with Adapthealth Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Adapthealth Corp has no effect on the direction of Integer Holdings i.e., Integer Holdings and Adapthealth Corp go up and down completely randomly.

Pair Corralation between Integer Holdings and Adapthealth Corp

Given the investment horizon of 90 days Integer Holdings Corp is expected to under-perform the Adapthealth Corp. But the stock apears to be less risky and, when comparing its historical volatility, Integer Holdings Corp is 2.56 times less risky than Adapthealth Corp. The stock trades about -0.13 of its potential returns per unit of risk. The Adapthealth Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  936.00  in Adapthealth Corp on December 30, 2024 and sell it today you would earn a total of  128.00  from holding Adapthealth Corp or generate 13.68% return on investment over 90 days.

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

Integer Holdings Corp  vs.  Adapthealth Corp

Integer Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integer Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Adapthealth Corp

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Adapthealth Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Adapthealth Corp displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integer Holdings and Adapthealth Corp

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

The idea behind Integer Holdings Corp and Adapthealth 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.