Correlation Between Integer Holdings and Neuropace

Can any of the company-specific risk be diversified away by investing in both Integer Holdings and Neuropace 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 Neuropace 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 Neuropace, you can compare the effects of market volatilities on Integer Holdings and Neuropace 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 Neuropace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integer Holdings and Neuropace.

Diversification Opportunities for Integer Holdings and Neuropace

0.56

Correlation Coefficient

Integer Holdings  Neuropace

Very weak diversification

The 3 months correlation between Integer and Neuropace is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and Neuropace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neuropace 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 Neuropace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neuropace has no effect on the direction of Integer Holdings i.e., Integer Holdings and Neuropace go up and down completely randomly.

Pair Corralation between Integer Holdings and Neuropace

Given the investment horizon of 90 days Integer Holdings Corp is expected to under-perform the Neuropace. But the stock apears to be less risky and, when comparing its historical volatility, Integer Holdings Corp is 2.47 times less risky than Neuropace. The stock trades about -0.13 of its potential returns per unit of risk. The Neuropace is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,087  in Neuropace on December 30, 2024 and sell it today you would earn a total of  98.00  from holding Neuropace or generate 9.02% return on investment over 90 days.

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

Integer Holdings Corp  vs.  Neuropace

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.

Neuropace

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Neuropace are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Neuropace exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integer Holdings and Neuropace

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

The idea behind Integer Holdings Corp and Neuropace 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.