Correlation Between Nexxen International and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Nexxen 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 Nexxen 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 Nexxen International and Teleflex Incorporated, you can compare the effects of market volatilities on Nexxen 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 Nexxen International with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexxen International and Teleflex Incorporated.
Diversification Opportunities for Nexxen International and Teleflex Incorporated
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nexxen and Teleflex is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Nexxen International and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Nexxen 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 Nexxen International 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 Nexxen International i.e., Nexxen International and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Nexxen International and Teleflex Incorporated
Given the investment horizon of 90 days Nexxen International is expected to generate 1.55 times more return on investment than Teleflex Incorporated. However, Nexxen International is 1.55 times more volatile than Teleflex Incorporated. It trades about 0.2 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.24 per unit of risk. If you would invest 800.00 in Nexxen International on August 28, 2024 and sell it today you would earn a total of 179.00 from holding Nexxen International or generate 22.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nexxen International vs. Teleflex Incorporated
Performance |
| Timeline |
| Nexxen International |
| Teleflex Incorporated |
Nexxen International and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nexxen International and Teleflex Incorporated
The main advantage of trading using opposite Nexxen International and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexxen 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.| Nexxen International vs. Toro Co | Nexxen International vs. Newell Brands | Nexxen International vs. Lincoln Electric Holdings | Nexxen International vs. RBC Bearings Incorporated |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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