Correlation Between Inspire Medical and Integer Holdings

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

Diversification Opportunities for Inspire Medical and Integer Holdings

-0.11

Correlation Coefficient

Inspire Medical  Integer Holdings

Good diversification

The 3 months correlation between Inspire and Integer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Inspire Medical Systems 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 Inspire 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 Inspire Medical Systems 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 Inspire Medical i.e., Inspire Medical and Integer Holdings go up and down completely randomly.

Pair Corralation between Inspire Medical and Integer Holdings

Given the investment horizon of 90 days Inspire Medical Systems is expected to generate 1.17 times more return on investment than Integer Holdings. However, Inspire Medical is 1.17 times more volatile than Integer Holdings Corp. It trades about 0.1 of its potential returns per unit of risk. Integer Holdings Corp is currently generating about -0.12 per unit of risk. If you would invest  9,175  in Inspire Medical Systems on August 26, 2025 and sell it today you would earn a total of  2,554  from holding Inspire Medical Systems or generate 27.84% return on investment over 90 days.

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

Inspire Medical Systems  vs.  Integer Holdings Corp

Inspire Medical Systems

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Inspire Medical Systems are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Inspire Medical reported solid returns over the last few months and may actually be approaching a breakup point.

Integer Holdings Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Integer Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in December 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Inspire Medical and Integer Holdings

The main advantage of trading using opposite Inspire Medical and Integer Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspire 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 Inspire Medical Systems 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .