Correlation Between Lion One and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and Teleflex Incorporated, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Teleflex Incorporated.
Diversification Opportunities for Lion One and Teleflex Incorporated
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lion and Teleflex is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Lion One 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 Lion One Metals 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 Lion One i.e., Lion One and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Lion One and Teleflex Incorporated
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Teleflex Incorporated. In addition to that, Lion One is 2.01 times more volatile than Teleflex Incorporated. It trades about -0.1 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 20,839 in Teleflex Incorporated on August 29, 2024 and sell it today you would lose (1,639) from holding Teleflex Incorporated or give up 7.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. Teleflex Incorporated
Performance |
| Timeline |
| Lion One Metals |
| Teleflex Incorporated |
Lion One and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Teleflex Incorporated
The main advantage of trading using opposite Lion One and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Silver Hammer Mining | Lion One vs. Reyna Silver Corp | Lion One vs. Guanajuato Silver | Lion One vs. Silver One Resources |
| Teleflex Incorporated vs. Femasys | Teleflex Incorporated vs. Sharps Technology Warrant | Teleflex Incorporated vs. GlucoTrack | Teleflex Incorporated vs. Walt Disney |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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