Correlation Between Teleflex Incorporated and Lipocine
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Lipocine 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 Lipocine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Lipocine, you can compare the effects of market volatilities on Teleflex Incorporated and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Lipocine.
Diversification Opportunities for Teleflex Incorporated and Lipocine
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and Lipocine is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Lipocine go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Lipocine
Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 0.22 times more return on investment than Lipocine. However, Teleflex Incorporated is 4.48 times less risky than Lipocine. It trades about -0.22 of its potential returns per unit of risk. Lipocine is currently generating about -0.25 per unit of risk. If you would invest 20,696 in Teleflex Incorporated on September 4, 2024 and sell it today you would lose (1,265) from holding Teleflex Incorporated or give up 6.11% 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. Lipocine
Performance |
| Timeline |
| Teleflex Incorporated |
| Lipocine |
Teleflex Incorporated and Lipocine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Lipocine
The main advantage of trading using opposite Teleflex Incorporated and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine'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, |
| Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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