Correlation Between U Power and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both U Power and Teleflex Incorporated 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 U Power and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between U Power Limited and Teleflex Incorporated, you can compare the effects of market volatilities on U Power and Teleflex Incorporated 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 U Power with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of U Power and Teleflex Incorporated.
Diversification Opportunities for U Power and Teleflex Incorporated
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between UCAR and Teleflex is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding U Power Limited and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and U Power 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 U Power Limited are associated (or correlated) with Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of U Power i.e., U Power and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between U Power and Teleflex Incorporated
Given the investment horizon of 90 days U Power Limited is expected to generate 37.96 times more return on investment than Teleflex Incorporated. However, U Power is 37.96 times more volatile than Teleflex Incorporated. It trades about 0.05 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.03 per unit of risk. If you would invest 0.00 in U Power Limited on September 20, 2024 and sell it today you would earn a total of 665.00 from holding U Power Limited or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.05% |
| Values | Daily Returns |
U Power Limited vs. Teleflex Incorporated
Performance |
| Timeline |
| U Power Limited |
| Teleflex Incorporated |
U Power and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with U Power and Teleflex Incorporated
The main advantage of trading using opposite U Power and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if U Power position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.| U Power vs. Kaixin Auto Holdings | U Power vs. Uxin | U Power vs. SunCar Technology Group | U Power vs. Carvana Co |
| Teleflex Incorporated vs. Avita Medical | Teleflex Incorporated vs. Inogen Inc | Teleflex Incorporated vs. Apyx Medical |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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