Correlation Between Teleflex Incorporated and Amgen
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Amgen 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 Teleflex Incorporated and Amgen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Amgen Inc, you can compare the effects of market volatilities on Teleflex Incorporated and Amgen 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 Teleflex Incorporated with a short position of Amgen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Amgen.
Diversification Opportunities for Teleflex Incorporated and Amgen
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teleflex and Amgen is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Amgen Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amgen Inc and Teleflex Incorporated 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 Teleflex Incorporated are associated (or correlated) with Amgen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amgen Inc has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Amgen go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Amgen
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Amgen. In addition to that, Teleflex Incorporated is 1.7 times more volatile than Amgen Inc. It trades about -0.24 of its total potential returns per unit of risk. Amgen Inc is currently generating about -0.14 per unit of volatility. If you would invest 31,465 in Amgen Inc on August 28, 2024 and sell it today you would lose (2,065) from holding Amgen Inc or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Amgen Inc
Performance |
| Timeline |
| Teleflex Incorporated |
| Amgen Inc |
Teleflex Incorporated and Amgen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Amgen
The main advantage of trading using opposite Teleflex Incorporated and Amgen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Amgen 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 Amgen will offset losses from the drop in Amgen's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Amgen vs. Eliem Therapeutics | Amgen vs. HCW Biologics | Amgen vs. Scpharmaceuticals | Amgen vs. Milestone Pharmaceuticals |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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