Correlation Between Xtant Medical and Teleflex Incorporated
Can any of the company-specific risk be diversified away by investing in both Xtant Medical 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 Xtant Medical and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtant Medical Holdings and Teleflex Incorporated, you can compare the effects of market volatilities on Xtant Medical 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 Xtant Medical with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtant Medical and Teleflex Incorporated.
Diversification Opportunities for Xtant Medical and Teleflex Incorporated
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Xtant and Teleflex is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Xtant Medical Holdings and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Xtant Medical 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 Xtant Medical Holdings 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 Xtant Medical i.e., Xtant Medical and Teleflex Incorporated go up and down completely randomly.
Pair Corralation between Xtant Medical and Teleflex Incorporated
Given the investment horizon of 90 days Xtant Medical Holdings is expected to under-perform the Teleflex Incorporated. In addition to that, Xtant Medical is 4.6 times more volatile than Teleflex Incorporated. It trades about -0.12 of its total potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.07 per unit of volatility. If you would invest 18,118 in Teleflex Incorporated on November 29, 2024 and sell it today you would lose (355.00) from holding Teleflex Incorporated or give up 1.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Xtant Medical Holdings vs. Teleflex Incorporated
Performance |
| Timeline |
| Xtant Medical Holdings |
| Teleflex Incorporated |
Xtant Medical and Teleflex Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtant Medical and Teleflex Incorporated
The main advantage of trading using opposite Xtant Medical and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtant Medical 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.| Xtant Medical vs. Neuropace | Xtant Medical vs. Electromed | Xtant Medical vs. Orthopediatrics Corp | Xtant Medical vs. SurModics |
| Teleflex Incorporated vs. West Pharmaceutical Services | Teleflex Incorporated vs. Alcon AG | Teleflex Incorporated vs. ResMed Inc | Teleflex Incorporated vs. ICU 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |