Correlation Between Teleflex Incorporated and Genfit
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Genfit 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 Genfit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Genfit, you can compare the effects of market volatilities on Teleflex Incorporated and Genfit 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 Genfit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Genfit.
Diversification Opportunities for Teleflex Incorporated and Genfit
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teleflex and Genfit is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Genfit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Genfit 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 Genfit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Genfit has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Genfit go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Genfit
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Genfit. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 2.23 times less risky than Genfit. The stock trades about -0.06 of its potential returns per unit of risk. The Genfit is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 356.00 in Genfit on November 3, 2024 and sell it today you would earn a total of 17.00 from holding Genfit or generate 4.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Genfit
Performance |
| Timeline |
| Teleflex Incorporated |
| Genfit |
Teleflex Incorporated and Genfit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Genfit
The main advantage of trading using opposite Teleflex Incorporated and Genfit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Genfit 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 Genfit will offset losses from the drop in Genfit's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Genfit vs. HCW Biologics | Genfit vs. Molecular Partners AG | Genfit vs. MediciNova | Genfit vs. Anebulo Pharmaceuticals |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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