Correlation Between Teleflex Incorporated and United Homes
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and United Homes 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 United Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and United Homes Group, you can compare the effects of market volatilities on Teleflex Incorporated and United Homes 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 United Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and United Homes.
Diversification Opportunities for Teleflex Incorporated and United Homes
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Teleflex and United is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and United Homes Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Homes Group 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 United Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Homes Group has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and United Homes go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and United Homes
Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the United Homes. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.2 times less risky than United Homes. The stock trades about -0.24 of its potential returns per unit of risk. The United Homes Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 564.00 in United Homes Group on August 27, 2024 and sell it today you would earn a total of 22.00 from holding United Homes Group or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. United Homes Group
Performance |
| Timeline |
| Teleflex Incorporated |
| United Homes Group |
Teleflex Incorporated and United Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and United Homes
The main advantage of trading using opposite Teleflex Incorporated and United Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, United Homes 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 United Homes will offset losses from the drop in United Homes' long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| United Homes vs. VF Corporation | United Homes vs. Levi Strauss Co | United Homes vs. Under Armour A | United Homes vs. Oxford Industries |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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