Correlation Between Apyx Medical and Integer Holdings

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

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

Diversification Opportunities for Apyx Medical and Integer Holdings

0.18

Correlation Coefficient

Apyx Medical  Integer Holdings

Average diversification

The 3 months correlation between Apyx and Integer is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Apyx Medical 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 Apyx Medical 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 Apyx Medical 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 Apyx Medical i.e., Apyx Medical and Integer Holdings go up and down completely randomly.

Pair Corralation between Apyx Medical and Integer Holdings

Given the investment horizon of 90 days Apyx Medical is expected to generate 2.29 times more return on investment than Integer Holdings. However, Apyx Medical is 2.29 times more volatile than Integer Holdings Corp. It trades about 0.05 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about -0.02 per unit of risk. If you would invest  118.00  in Apyx Medical on July 28, 2024 and sell it today you would earn a total of  3.00  from holding Apyx Medical or generate 2.54% return on investment over 90 days.

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

Apyx Medical  vs.  Integer Holdings Corp

Apyx Medical

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Apyx Medical has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Apyx Medical is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Integer Holdings Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable technical and fundamental indicators, Integer Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Apyx Medical and Integer Holdings

The main advantage of trading using opposite Apyx Medical and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apyx Medical 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 Apyx Medical 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.