Correlation Between Teleflex Incorporated and Niagara Mohawk
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Niagara Mohawk 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 Niagara Mohawk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Niagara Mohawk Power, you can compare the effects of market volatilities on Teleflex Incorporated and Niagara Mohawk 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 Niagara Mohawk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Niagara Mohawk.
Diversification Opportunities for Teleflex Incorporated and Niagara Mohawk
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Teleflex and Niagara is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Niagara Mohawk Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niagara Mohawk Power 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 Niagara Mohawk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niagara Mohawk Power has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Niagara Mohawk go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Niagara Mohawk
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Niagara Mohawk. In addition to that, Teleflex Incorporated is 1.32 times more volatile than Niagara Mohawk Power. It trades about -0.04 of its total potential returns per unit of risk. Niagara Mohawk Power is currently generating about 0.09 per unit of volatility. If you would invest 5,626 in Niagara Mohawk Power on September 5, 2024 and sell it today you would earn a total of 934.00 from holding Niagara Mohawk Power or generate 16.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Teleflex Incorporated vs. Niagara Mohawk Power
Performance |
| Timeline |
| Teleflex Incorporated |
| Niagara Mohawk Power |
Teleflex Incorporated and Niagara Mohawk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Niagara Mohawk
The main advantage of trading using opposite Teleflex Incorporated and Niagara Mohawk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Niagara Mohawk 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 Niagara Mohawk will offset losses from the drop in Niagara Mohawk'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, |
| Niagara Mohawk vs. Teleflex Incorporated | Niagara Mohawk vs. HUTCHMED DRC | Niagara Mohawk vs. Amgen Inc | Niagara Mohawk vs. Radcom |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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