Correlation Between Teleflex Incorporated and Essilor International
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Essilor International 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 Essilor International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Essilor International SA, you can compare the effects of market volatilities on Teleflex Incorporated and Essilor International 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 Essilor International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Essilor International.
Diversification Opportunities for Teleflex Incorporated and Essilor International
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and Essilor is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Essilor International SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Essilor International 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 Essilor International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Essilor International has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Essilor International go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Essilor International
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Essilor International. In addition to that, Teleflex Incorporated is 1.41 times more volatile than Essilor International SA. It trades about -0.02 of its total potential returns per unit of risk. Essilor International SA is currently generating about 0.07 per unit of volatility. If you would invest 9,082 in Essilor International SA on November 2, 2024 and sell it today you would earn a total of 4,711 from holding Essilor International SA or generate 51.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Teleflex Incorporated vs. Essilor International SA
Performance |
| Timeline |
| Teleflex Incorporated |
| Essilor International |
Teleflex Incorporated and Essilor International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Essilor International
The main advantage of trading using opposite Teleflex Incorporated and Essilor International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Essilor International 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 Essilor International will offset losses from the drop in Essilor International's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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