Correlation Between Teleflex Incorporated and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Valneva SE 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 Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Valneva SE ADR, you can compare the effects of market volatilities on Teleflex Incorporated and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Valneva SE.
Diversification Opportunities for Teleflex Incorporated and Valneva SE
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Teleflex and Valneva is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Valneva SE go up and down completely randomly.
Pair Corralation between Teleflex Incorporated and Valneva SE
Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 0.56 times more return on investment than Valneva SE. However, Teleflex Incorporated is 1.78 times less risky than Valneva SE. It trades about -0.02 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.08 per unit of risk. If you would invest 23,591 in Teleflex Incorporated on August 31, 2024 and sell it today you would lose (4,306) from holding Teleflex Incorporated or give up 18.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Teleflex Incorporated vs. Valneva SE ADR
Performance |
| Timeline |
| Teleflex Incorporated |
| Valneva SE ADR |
Teleflex Incorporated and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Teleflex Incorporated and Valneva SE
The main advantage of trading using opposite Teleflex Incorporated and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU Medical |
| Valneva SE vs. NuCana PLC | Valneva SE vs. Sage Therapeutic | Valneva SE vs. Sellas Life Sciences | Valneva SE vs. Third Harmonic Bio |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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