Correlation Between ICU Medical and Integra LifeSciences

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

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

Diversification Opportunities for ICU Medical and Integra LifeSciences

0.5

Correlation Coefficient

ICU Medical  Integra LifeSciences

Very weak diversification

The 3 months correlation between ICU and Integra is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding ICU Medical and Integra LifeSciences Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integra LifeSciences and ICU 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 ICU Medical 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 ICU Medical i.e., ICU Medical and Integra LifeSciences go up and down completely randomly.

Pair Corralation between ICU Medical and Integra LifeSciences

Given the investment horizon of 90 days ICU Medical is expected to under-perform the Integra LifeSciences. But the stock apears to be less risky and, when comparing its historical volatility, ICU Medical is 1.36 times less risky than Integra LifeSciences. The stock trades about -0.11 of its potential returns per unit of risk. The Integra LifeSciences Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,292  in Integra LifeSciences Holdings on May 14, 2025 and sell it today you would earn a total of  67.00  from holding Integra LifeSciences Holdings or generate 5.19% return on investment over 90 days.

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

ICU Medical  vs.  Integra LifeSciences Holdings

ICU Medical

Risk-Adjusted Performance

Weakest

Over the last 90 days ICU Medical has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Integra LifeSciences

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Integra LifeSciences Holdings are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Integra LifeSciences may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with ICU Medical and Integra LifeSciences

The main advantage of trading using opposite ICU Medical and Integra LifeSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICU Medical 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 ICU Medical 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.