Correlation Between Teleflex Incorporated and BGC
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and BGC 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 BGC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and BGC Group, you can compare the effects of market volatilities on Teleflex Incorporated and BGC 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 BGC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and BGC.
Diversification Opportunities for Teleflex Incorporated and BGC
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teleflex and BGC is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and BGC Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGC Group 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 BGC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGC Group has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and BGC go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and BGC
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the BGC. In addition to that, Teleflex Incorporated is 1.16 times more volatile than BGC Group. It trades about -0.24 of its total potential returns per unit of risk. BGC Group is currently generating about 0.08 per unit of volatility. If you would invest 934.00 in BGC Group on August 28, 2024 and sell it today you would earn a total of 42.00 from holding BGC Group or generate 4.5% 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. BGC Group
Performance |
| Timeline |
| Teleflex Incorporated |
| BGC Group |
Teleflex Incorporated and BGC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and BGC
The main advantage of trading using opposite Teleflex Incorporated and BGC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, BGC 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 BGC will offset losses from the drop in BGC's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| BGC vs. Universal | BGC vs. Mid Atlantic Home Health | BGC vs. Molson Coors Brewing | BGC vs. Bassett Furniture Industries |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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