Correlation Between Teleflex Incorporated and Lakeland Industries
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Lakeland Industries 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 Lakeland Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Lakeland Industries, you can compare the effects of market volatilities on Teleflex Incorporated and Lakeland Industries 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 Lakeland Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Lakeland Industries.
Diversification Opportunities for Teleflex Incorporated and Lakeland Industries
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Teleflex and Lakeland is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Lakeland Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lakeland Industries 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 Lakeland Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lakeland Industries has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Lakeland Industries go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Lakeland Industries
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Lakeland Industries. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.41 times less risky than Lakeland Industries. The stock trades about -0.01 of its potential returns per unit of risk. The Lakeland Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,329 in Lakeland Industries on August 28, 2024 and sell it today you would earn a total of 832.00 from holding Lakeland Industries or generate 62.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Lakeland Industries
Performance |
| Timeline |
| Teleflex Incorporated |
| Lakeland Industries |
Teleflex Incorporated and Lakeland Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Lakeland Industries
The main advantage of trading using opposite Teleflex Incorporated and Lakeland Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Lakeland Industries 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 Lakeland Industries will offset losses from the drop in Lakeland Industries' long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Lakeland Industries vs. Vince Holding Corp | Lakeland Industries vs. Oxford Industries | Lakeland Industries vs. Gildan Activewear | Lakeland Industries vs. Columbia Sportswear |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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