Correlation Between Teleflex Incorporated and Calmare Therapeutics
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Calmare Therapeutics 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 Calmare Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Calmare Therapeutics, you can compare the effects of market volatilities on Teleflex Incorporated and Calmare Therapeutics 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 Calmare Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Calmare Therapeutics.
Diversification Opportunities for Teleflex Incorporated and Calmare Therapeutics
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teleflex and Calmare is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Calmare Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calmare Therapeutics 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 Calmare Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calmare Therapeutics has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Calmare Therapeutics go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Calmare Therapeutics
Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 0.07 times more return on investment than Calmare Therapeutics. However, Teleflex Incorporated is 13.57 times less risky than Calmare Therapeutics. It trades about -0.03 of its potential returns per unit of risk. Calmare Therapeutics is currently generating about -0.5 per unit of risk. If you would invest 24,786 in Teleflex Incorporated on September 19, 2024 and sell it today you would lose (7,520) from holding Teleflex Incorporated or give up 30.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Teleflex Incorporated vs. Calmare Therapeutics
Performance |
| Timeline |
| Teleflex Incorporated |
| Calmare Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Teleflex Incorporated and Calmare Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Calmare Therapeutics
The main advantage of trading using opposite Teleflex Incorporated and Calmare Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Calmare Therapeutics 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 Calmare Therapeutics will offset losses from the drop in Calmare Therapeutics' long position.| Teleflex Incorporated vs. Avita Medical | Teleflex Incorporated vs. Inogen Inc | Teleflex Incorporated vs. Apyx Medical |
| Calmare Therapeutics vs. BioNTech SE | Calmare Therapeutics vs. Teleflex Incorporated | Calmare Therapeutics vs. Modine Manufacturing | Calmare Therapeutics vs. U Power 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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