Correlation Between Integer Holdings and ICU Medical

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

Diversification Opportunities for Integer Holdings and ICU Medical

0.62

Correlation Coefficient

Integer Holdings  ICU Medical

Poor diversification

The 3 months correlation between Integer and ICU is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical 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 ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Integer Holdings i.e., Integer Holdings and ICU Medical go up and down completely randomly.

Pair Corralation between Integer Holdings and ICU Medical

Given the investment horizon of 90 days Integer Holdings Corp is expected to under-perform the ICU Medical. But the stock apears to be less risky and, when comparing its historical volatility, Integer Holdings Corp is 1.43 times less risky than ICU Medical. The stock trades about -0.07 of its potential returns per unit of risk. The ICU Medical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  13,600  in ICU Medical on May 3, 2025 and sell it today you would lose (759.00) from holding ICU Medical or give up 5.58% of portfolio value over 90 days.

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

Integer Holdings Corp  vs.  ICU Medical

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 latest uncertain performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

ICU Medical

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Integer Holdings and ICU Medical

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

The idea behind Integer Holdings Corp and ICU Medical 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 CEOs Directory module to screen CEOs from public companies around the world.