Correlation Between Sonida Senior and Integer Holdings
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and Integer Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and Integer Holdings Corp, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of Integer Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and Integer Holdings.
Diversification Opportunities for Sonida Senior and Integer Holdings
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sonida and Integer is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living 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 Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and Integer Holdings go up and down completely randomly.
Pair Corralation between Sonida Senior and Integer Holdings
Given the investment horizon of 90 days Sonida Senior Living is expected to generate 2.05 times more return on investment than Integer Holdings. However, Sonida Senior is 2.05 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 2,153 in Sonida Senior Living on November 18, 2024 and sell it today you would earn a total of 397.00 from holding Sonida Senior Living or generate 18.44% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sonida Senior Living vs. Integer Holdings Corp
Performance |
Timeline |
Sonida Senior Living |
Integer Holdings Corp |
Sonida Senior and Integer Holdings Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sonida Senior and Integer Holdings
The main advantage of trading using opposite Sonida Senior and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.Sonida Senior vs. Select Medical Holdings | ||
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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