Correlation Between Teleflex Incorporated and AtriCure
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and AtriCure 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 AtriCure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and AtriCure, you can compare the effects of market volatilities on Teleflex Incorporated and AtriCure 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 AtriCure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and AtriCure.
Diversification Opportunities for Teleflex Incorporated and AtriCure
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teleflex and AtriCure is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and AtriCure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AtriCure 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 AtriCure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AtriCure has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and AtriCure go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and AtriCure
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the AtriCure. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.62 times less risky than AtriCure. The stock trades about -0.02 of its potential returns per unit of risk. The AtriCure is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,409 in AtriCure on August 27, 2024 and sell it today you would lose (835.00) from holding AtriCure or give up 18.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. AtriCure
Performance |
| Timeline |
| Teleflex Incorporated |
| AtriCure |
Teleflex Incorporated and AtriCure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and AtriCure
The main advantage of trading using opposite Teleflex Incorporated and AtriCure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, AtriCure 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 AtriCure will offset losses from the drop in AtriCure's long position.| 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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