Correlation Between Teleflex Incorporated and Maiden Holdings
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Maiden Holdings 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 Maiden Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Maiden Holdings, you can compare the effects of market volatilities on Teleflex Incorporated and Maiden Holdings 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 Maiden Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Maiden Holdings.
Diversification Opportunities for Teleflex Incorporated and Maiden Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teleflex and Maiden is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Maiden Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Maiden Holdings 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 Maiden Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Maiden Holdings has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Maiden Holdings go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Maiden Holdings
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Maiden Holdings. In addition to that, Teleflex Incorporated is 2.9 times more volatile than Maiden Holdings. It trades about -0.24 of its total potential returns per unit of risk. Maiden Holdings is currently generating about -0.06 per unit of volatility. If you would invest 1,738 in Maiden Holdings on August 31, 2024 and sell it today you would lose (31.00) from holding Maiden Holdings or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Maiden Holdings
Performance |
| Timeline |
| Teleflex Incorporated |
| Maiden Holdings |
Teleflex Incorporated and Maiden Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Maiden Holdings
The main advantage of trading using opposite Teleflex Incorporated and Maiden Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Maiden Holdings 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 Maiden Holdings will offset losses from the drop in Maiden Holdings' long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Maiden Holdings vs. Maiden Holdings North | Maiden Holdings vs. Reinsurance Group of | Maiden Holdings vs. Entergy Arkansas LLC | Maiden Holdings vs. Entergy New Orleans |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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