Correlation Between Teleflex Incorporated and Knife River
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Knife River 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 Knife River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Knife River, you can compare the effects of market volatilities on Teleflex Incorporated and Knife River 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 Knife River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Knife River.
Diversification Opportunities for Teleflex Incorporated and Knife River
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Teleflex and Knife is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Knife River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Knife River 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 Knife River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Knife River has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Knife River go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Knife River
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Knife River. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.1 times less risky than Knife River. The stock trades about -0.03 of its potential returns per unit of risk. The Knife River is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 6,254 in Knife River on September 4, 2024 and sell it today you would earn a total of 4,098 from holding Knife River or generate 65.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Knife River
Performance |
| Timeline |
| Teleflex Incorporated |
| Knife River |
Teleflex Incorporated and Knife River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Knife River
The main advantage of trading using opposite Teleflex Incorporated and Knife River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Knife River 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 Knife River will offset losses from the drop in Knife River's long position.| Teleflex Incorporated vs. Baxter International | Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. The Cooper Companies, |
| Knife River vs. Chemours Co | Knife River vs. Consol Energy | Knife River vs. Teleflex Incorporated | Knife River vs. Merit Medical Systems |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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