Correlation Between Huabao International and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Huabao International and Teleflex Incorporated 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 Huabao International and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Huabao International Holdings and Teleflex Incorporated, you can compare the effects of market volatilities on Huabao International and Teleflex Incorporated 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 Huabao International with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huabao International and Teleflex Incorporated.
Diversification Opportunities for Huabao International and Teleflex Incorporated
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huabao and Teleflex is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Huabao International Holdings and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Huabao International 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 Huabao International Holdings are associated (or correlated) with Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of Huabao International i.e., Huabao International and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Huabao International and Teleflex Incorporated
If you would invest 1,460 in Huabao International Holdings on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Huabao International Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.69% |
| Values | Daily Returns |
Huabao International Holdings vs. Teleflex Incorporated
Performance |
| Timeline |
| Huabao International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Teleflex Incorporated |
Huabao International and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huabao International and Teleflex Incorporated
The main advantage of trading using opposite Huabao International and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huabao International position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.| Huabao International vs. Teleflex Incorporated | Huabao International vs. IPG Photonics | Huabao International vs. ClearOne | Huabao International vs. Amgen Inc |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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