Correlation Between Teleflex Incorporated and Citizens
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Citizens 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 Citizens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Citizens, you can compare the effects of market volatilities on Teleflex Incorporated and Citizens 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 Citizens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Citizens.
Diversification Opportunities for Teleflex Incorporated and Citizens
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teleflex and Citizens is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Citizens in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citizens 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 Citizens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citizens has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Citizens go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Citizens
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Citizens. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 2.23 times less risky than Citizens. The stock trades about -0.16 of its potential returns per unit of risk. The Citizens is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 304.00 in Citizens on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Citizens or generate 47.37% 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. Citizens
Performance |
| Timeline |
| Teleflex Incorporated |
| Citizens |
Teleflex Incorporated and Citizens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Citizens
The main advantage of trading using opposite Teleflex Incorporated and Citizens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Citizens 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 Citizens will offset losses from the drop in Citizens' long position.| Teleflex Incorporated vs. Becton Dickinson and | Teleflex Incorporated vs. Merit Medical Systems | Teleflex Incorporated vs. AptarGroup |
| Citizens vs. CNO Financial Group | Citizens vs. Brighthouse Financial | Citizens vs. FG Annuities Life | Citizens vs. Prudential Public Limited |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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