Correlation Between Teleflex Incorporated and RLX Technology
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and RLX Technology 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 RLX Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and RLX Technology, you can compare the effects of market volatilities on Teleflex Incorporated and RLX Technology 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 RLX Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and RLX Technology.
Diversification Opportunities for Teleflex Incorporated and RLX Technology
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and RLX is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and RLX Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RLX Technology 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 RLX Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RLX Technology has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and RLX Technology go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and RLX Technology
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the RLX Technology. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.97 times less risky than RLX Technology. The stock trades about -0.22 of its potential returns per unit of risk. The RLX Technology is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 162.00 in RLX Technology on September 4, 2024 and sell it today you would earn a total of 35.00 from holding RLX Technology or generate 21.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. RLX Technology
Performance |
| Timeline |
| Teleflex Incorporated |
| RLX Technology |
Teleflex Incorporated and RLX Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and RLX Technology
The main advantage of trading using opposite Teleflex Incorporated and RLX Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, RLX Technology 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 RLX Technology will offset losses from the drop in RLX Technology'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, |
| RLX Technology vs. Green Globe International | RLX Technology vs. Kaival Brands Innovations | RLX Technology vs. Greenlane Holdings | RLX Technology vs. 22nd Century Group |
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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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