Correlation Between Integer Holdings and GN Store

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

Diversification Opportunities for Integer Holdings and GN Store

0.04

Correlation Coefficient

Integer Holdings  GN Store

Significant diversification

The 3 months correlation between Integer and GNNDY is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Integer Holdings Corp and GN Store Nord in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GN Store Nord 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 GN Store. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GN Store Nord has no effect on the direction of Integer Holdings i.e., Integer Holdings and GN Store go up and down completely randomly.

Pair Corralation between Integer Holdings and GN Store

Given the investment horizon of 90 days Integer Holdings Corp is expected to under-perform the GN Store. But the stock apears to be less risky and, when comparing its historical volatility, Integer Holdings Corp is 1.18 times less risky than GN Store. The stock trades about -0.04 of its potential returns per unit of risk. The GN Store Nord is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  7,991  in GN Store Nord on February 4, 2024 and sell it today you would earn a total of  693.00  from holding GN Store Nord or generate 8.67% return on investment over 90 days.

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

Integer Holdings Corp  vs.  GN Store Nord

Integer Holdings Corp

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Integer Holdings Corp are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Integer Holdings may actually be approaching a critical reversion point that can send shares even higher in June 2024.

GN Store Nord

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in GN Store Nord are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating fundamental indicators, GN Store showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Integer Holdings and GN Store

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

The idea behind Integer Holdings Corp and GN Store Nord 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.