Correlation Between Teleflex Incorporated and Barings BDC
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Barings BDC 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 Barings BDC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Barings BDC, you can compare the effects of market volatilities on Teleflex Incorporated and Barings BDC 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 Barings BDC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Barings BDC.
Diversification Opportunities for Teleflex Incorporated and Barings BDC
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and Barings is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Barings BDC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings BDC 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 Barings BDC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings BDC has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Barings BDC go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Barings BDC
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Barings BDC. In addition to that, Teleflex Incorporated is 1.39 times more volatile than Barings BDC. It trades about -0.31 of its total potential returns per unit of risk. Barings BDC is currently generating about 0.37 per unit of volatility. If you would invest 941.00 in Barings BDC on September 5, 2024 and sell it today you would earn a total of 81.00 from holding Barings BDC or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Barings BDC
Performance |
| Timeline |
| Teleflex Incorporated |
| Barings BDC |
Teleflex Incorporated and Barings BDC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Barings BDC
The main advantage of trading using opposite Teleflex Incorporated and Barings BDC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Barings BDC 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 Barings BDC will offset losses from the drop in Barings BDC's long position.| Teleflex Incorporated vs. Baxter International | Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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