Correlation Between Teleflex Incorporated and AptarGroup
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and AptarGroup 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 AptarGroup into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and AptarGroup, you can compare the effects of market volatilities on Teleflex Incorporated and AptarGroup 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 AptarGroup. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and AptarGroup.
Diversification Opportunities for Teleflex Incorporated and AptarGroup
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teleflex and AptarGroup is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and AptarGroup in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AptarGroup 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 AptarGroup. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AptarGroup has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and AptarGroup go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and AptarGroup
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the AptarGroup. In addition to that, Teleflex Incorporated is 2.88 times more volatile than AptarGroup. It trades about -0.26 of its total potential returns per unit of risk. AptarGroup is currently generating about 0.06 per unit of volatility. If you would invest 16,720 in AptarGroup on August 24, 2024 and sell it today you would earn a total of 268.00 from holding AptarGroup or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. AptarGroup
Performance |
| Timeline |
| Teleflex Incorporated |
| AptarGroup |
Teleflex Incorporated and AptarGroup Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and AptarGroup
The main advantage of trading using opposite Teleflex Incorporated and AptarGroup positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, AptarGroup 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 AptarGroup will offset losses from the drop in AptarGroup's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| AptarGroup vs. Haemonetics | AptarGroup vs. Merit Medical Systems | AptarGroup vs. AngioDynamics | AptarGroup vs. Envista Holdings Corp |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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