Correlation Between Teleflex Incorporated and South Jersey
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and South Jersey 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 South Jersey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and South Jersey Industries, you can compare the effects of market volatilities on Teleflex Incorporated and South Jersey 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 South Jersey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and South Jersey.
Diversification Opportunities for Teleflex Incorporated and South Jersey
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Teleflex and South is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and South Jersey Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Jersey 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 South Jersey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Jersey Industries has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and South Jersey go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and South Jersey
If you would invest 6,745 in South Jersey Industries on August 31, 2024 and sell it today you would earn a total of 0.00 from holding South Jersey Industries or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
Teleflex Incorporated vs. South Jersey Industries
Performance |
| Timeline |
| Teleflex Incorporated |
| South Jersey Industries |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Teleflex Incorporated and South Jersey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and South Jersey
The main advantage of trading using opposite Teleflex Incorporated and South Jersey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, South Jersey 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 South Jersey will offset losses from the drop in South Jersey's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| South Jersey vs. Canlan Ice Sports | South Jersey vs. Copa Holdings SA | South Jersey vs. Sonos Inc | South Jersey vs. Playtech plc |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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