Correlation Between Sligro Food and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Sligro Food 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 Sligro Food and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Teleflex Incorporated, you can compare the effects of market volatilities on Sligro Food 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 Sligro Food with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Teleflex Incorporated.
Diversification Opportunities for Sligro Food and Teleflex Incorporated
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sligro and Teleflex is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Sligro Food 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 Sligro Food Group 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 Sligro Food i.e., Sligro Food and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Sligro Food and Teleflex Incorporated
Assuming the 90 days horizon Sligro Food Group is expected to under-perform the Teleflex Incorporated. But the pink sheet apears to be less risky and, when comparing its historical volatility, Sligro Food Group is 1.41 times less risky than Teleflex Incorporated. The pink sheet trades about -0.05 of its potential returns per unit of risk. The Teleflex Incorporated is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 23,497 in Teleflex Incorporated on October 13, 2024 and sell it today you would lose (6,036) from holding Teleflex Incorporated or give up 25.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 93.15% |
| Values | Daily Returns |
Sligro Food Group vs. Teleflex Incorporated
Performance |
| Timeline |
| Sligro Food Group |
| Teleflex Incorporated |
Sligro Food and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Teleflex Incorporated
The main advantage of trading using opposite Sligro Food and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food 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.| Sligro Food vs. AKITA Drilling | Sligro Food vs. Stagwell | Sligro Food vs. Awilco Drilling PLC | Sligro Food vs. National CineMedia |
| 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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