Correlation Between Niagara Mohawk and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Niagara Mohawk 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 Niagara Mohawk and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Niagara Mohawk Power and Teleflex Incorporated, you can compare the effects of market volatilities on Niagara Mohawk 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 Niagara Mohawk with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Niagara Mohawk and Teleflex Incorporated.
Diversification Opportunities for Niagara Mohawk and Teleflex Incorporated
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Niagara and Teleflex is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Niagara Mohawk Power and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Niagara Mohawk 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 Niagara Mohawk Power 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 Niagara Mohawk i.e., Niagara Mohawk and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Niagara Mohawk and Teleflex Incorporated
Assuming the 90 days horizon Niagara Mohawk Power is expected to under-perform the Teleflex Incorporated. In addition to that, Niagara Mohawk is 1.18 times more volatile than Teleflex Incorporated. It trades about -0.28 of its total potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.19 per unit of volatility. If you would invest 19,767 in Teleflex Incorporated on September 12, 2024 and sell it today you would lose (1,115) from holding Teleflex Incorporated or give up 5.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Niagara Mohawk Power vs. Teleflex Incorporated
Performance |
| Timeline |
| Niagara Mohawk Power |
| Teleflex Incorporated |
Niagara Mohawk and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Niagara Mohawk and Teleflex Incorporated
The main advantage of trading using opposite Niagara Mohawk and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Niagara Mohawk 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.| Niagara Mohawk vs. WiMi Hologram Cloud | Niagara Mohawk vs. Kandi Technologies Group | Niagara Mohawk vs. Ziff Davis | Niagara Mohawk vs. Ark Restaurants Corp |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical | Teleflex Incorporated vs. The Cooper Companies, |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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