Correlation Between Teleflex Incorporated and ICU Medical
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and ICU Medical 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 ICU Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and ICU Medical, you can compare the effects of market volatilities on Teleflex Incorporated and ICU Medical 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 ICU Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and ICU Medical.
Diversification Opportunities for Teleflex Incorporated and ICU Medical
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Teleflex and ICU is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and ICU Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICU Medical 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 ICU Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICU Medical has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and ICU Medical go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and ICU Medical
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the ICU Medical. In addition to that, Teleflex Incorporated is 2.58 times more volatile than ICU Medical. It trades about -0.26 of its total potential returns per unit of risk. ICU Medical is currently generating about -0.16 per unit of volatility. If you would invest 17,770 in ICU Medical on August 24, 2024 and sell it today you would lose (886.00) from holding ICU Medical or give up 4.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. ICU Medical
Performance |
| Timeline |
| Teleflex Incorporated |
| ICU Medical |
Teleflex Incorporated and ICU Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and ICU Medical
The main advantage of trading using opposite Teleflex Incorporated and ICU Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, ICU Medical 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 ICU Medical will offset losses from the drop in ICU Medical's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| ICU Medical vs. Merit Medical Systems | ICU Medical vs. The Cooper Companies, | ICU Medical vs. AngioDynamics | ICU Medical vs. AptarGroup |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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