Correlation Between Orthofix Medical and Integra LifeSciences
Can any of the company-specific risk be diversified away by investing in both Orthofix 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 Orthofix 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 Orthofix Medical and Integra LifeSciences Holdings, you can compare the effects of market volatilities on Orthofix 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 Orthofix Medical with a short position of Integra LifeSciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of Orthofix Medical and Integra LifeSciences.
Diversification Opportunities for Orthofix Medical and Integra LifeSciences
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Orthofix and Integra is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Orthofix 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 Orthofix 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 Orthofix 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 Orthofix Medical i.e., Orthofix Medical and Integra LifeSciences go up and down completely randomly.
Pair Corralation between Orthofix Medical and Integra LifeSciences
Given the investment horizon of 90 days Orthofix Medical is expected to under-perform the Integra LifeSciences. But the stock apears to be less risky and, when comparing its historical volatility, Orthofix Medical is 1.77 times less risky than Integra LifeSciences. The stock trades about -0.13 of its potential returns per unit of risk. The Integra LifeSciences Holdings is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,669 in Integra LifeSciences Holdings on April 26, 2025 and sell it today you would lose (398.00) from holding Integra LifeSciences Holdings or give up 23.85% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Orthofix Medical vs. Integra LifeSciences Holdings
Performance |
Timeline |
Orthofix Medical |
Integra LifeSciences |
Orthofix Medical and Integra LifeSciences Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Orthofix Medical and Integra LifeSciences
The main advantage of trading using opposite Orthofix Medical and Integra LifeSciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Orthofix 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.Orthofix Medical vs. CONMED | Orthofix Medical vs. Orthopediatrics Corp | Orthofix Medical vs. Pulmonx Corp | Orthofix Medical vs. Si Bone |
Integra LifeSciences vs. CONMED | Integra LifeSciences vs. Orthofix Medical | Integra LifeSciences vs. Integer Holdings Corp | Integra LifeSciences vs. Bruker |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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