Correlation Between KVH Industries and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both KVH Industries 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 KVH Industries and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KVH Industries and Teleflex Incorporated, you can compare the effects of market volatilities on KVH Industries 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 KVH Industries with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of KVH Industries and Teleflex Incorporated.
Diversification Opportunities for KVH Industries and Teleflex Incorporated
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between KVH and Teleflex is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding KVH Industries and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and KVH Industries 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 KVH Industries 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 KVH Industries i.e., KVH Industries and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between KVH Industries and Teleflex Incorporated
Given the investment horizon of 90 days KVH Industries is expected to under-perform the Teleflex Incorporated. In addition to that, KVH Industries is 1.58 times more volatile than Teleflex Incorporated. It trades about -0.03 of its total potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.02 per unit of volatility. If you would invest 23,591 in Teleflex Incorporated on August 31, 2024 and sell it today you would lose (4,306) from holding Teleflex Incorporated or give up 18.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KVH Industries vs. Teleflex Incorporated
Performance |
| Timeline |
| KVH Industries |
| Teleflex Incorporated |
KVH Industries and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KVH Industries and Teleflex Incorporated
The main advantage of trading using opposite KVH Industries and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KVH Industries 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.| KVH Industries vs. Telesat Corp | KVH Industries vs. Comtech Telecommunications Corp | KVH Industries vs. Knowles Cor | KVH Industries vs. Ituran Location and |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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