Correlation Between Haemonetics and Integra LifeSciences

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

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

Diversification Opportunities for Haemonetics and Integra LifeSciences

0.34

Correlation Coefficient

Haemonetics  Integra LifeSciences

Weak diversification

The 3 months correlation between Haemonetics and Integra is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Haemonetics and Integra LifeSciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra LifeSciences and Haemonetics 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 Haemonetics are associated (or correlated) with Integra LifeSciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integra LifeSciences has no effect on the direction of Haemonetics i.e., Haemonetics and Integra LifeSciences go up and down completely randomly.

Pair Corralation between Haemonetics and Integra LifeSciences

Considering the 90-day investment horizon Haemonetics is expected to generate 0.81 times more return on investment than Integra LifeSciences. However, Haemonetics is 1.24 times less risky than Integra LifeSciences. It trades about -0.14 of its potential returns per unit of risk. Integra LifeSciences Holdings is currently generating about -0.2 per unit of risk. If you would invest  7,524  in Haemonetics on January 20, 2025 and sell it today you would lose (1,807) from holding Haemonetics or give up 24.02% of portfolio value over 90 days.

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

Haemonetics  vs.  Integra LifeSciences Holdings

Haemonetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haemonetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Integra LifeSciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days Integra LifeSciences Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Haemonetics and Integra LifeSciences

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

The idea behind Haemonetics and Integra LifeSciences Holdings 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.