Correlation Between Teleflex Incorporated and Ameritrans Capital
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Ameritrans Capital 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 Ameritrans Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Ameritrans Capital Corp, you can compare the effects of market volatilities on Teleflex Incorporated and Ameritrans Capital 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 Ameritrans Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Ameritrans Capital.
Diversification Opportunities for Teleflex Incorporated and Ameritrans Capital
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Teleflex and Ameritrans is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Ameritrans Capital Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ameritrans Capital Corp 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 Ameritrans Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ameritrans Capital Corp has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Ameritrans Capital go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Ameritrans Capital
If you would invest 17,905 in Teleflex Incorporated on November 3, 2024 and sell it today you would earn a total of 119.00 from holding Teleflex Incorporated or generate 0.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Teleflex Incorporated vs. Ameritrans Capital Corp
Performance |
| Timeline |
| Teleflex Incorporated |
| Ameritrans Capital Corp |
Teleflex Incorporated and Ameritrans Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Ameritrans Capital
The main advantage of trading using opposite Teleflex Incorporated and Ameritrans Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Ameritrans Capital 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 Ameritrans Capital will offset losses from the drop in Ameritrans Capital's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Ameritrans Capital vs. LG Display Co | Ameritrans Capital vs. Warner Music Group | Ameritrans Capital vs. Academy Sports Outdoors | Ameritrans Capital vs. Marine Products |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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