Correlation Between Teledyne Technologies and Global Warming

Can any of the company-specific risk be diversified away by investing in both Teledyne Technologies and Global Warming 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 Teledyne Technologies and Global Warming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Teledyne Technologies Incorporated and Global Warming Solut, you can compare the effects of market volatilities on Teledyne Technologies and Global Warming 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 Teledyne Technologies with a short position of Global Warming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teledyne Technologies and Global Warming.

Diversification Opportunities for Teledyne Technologies and Global Warming

-0.72

Correlation Coefficient

Teledyne Technologies  Global Warming

Pay attention - limited upside

The 3 months correlation between Teledyne and Global is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Teledyne Technologies Incorpor and Global Warming Solut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Warming Solut and Teledyne Technologies 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 Teledyne Technologies Incorporated are associated (or correlated) with Global Warming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Warming Solut has no effect on the direction of Teledyne Technologies i.e., Teledyne Technologies and Global Warming go up and down completely randomly.

Pair Corralation between Teledyne Technologies and Global Warming

Considering the 90-day investment horizon Teledyne Technologies Incorporated is expected to generate 0.12 times more return on investment than Global Warming. However, Teledyne Technologies Incorporated is 8.05 times less risky than Global Warming. It trades about 0.09 of its potential returns per unit of risk. Global Warming Solut is currently generating about -0.05 per unit of risk. If you would invest  47,657  in Teledyne Technologies Incorporated on December 26, 2024 and sell it today you would earn a total of  3,568  from holding Teledyne Technologies Incorporated or generate 7.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.36%
Values	Daily Returns

Teledyne Technologies Incorpor  vs.  Global Warming Solut

Teledyne Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Teledyne Technologies Incorporated are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Teledyne Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Global Warming Solut

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Warming Solut has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Teledyne Technologies and Global Warming

The main advantage of trading using opposite Teledyne Technologies and Global Warming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teledyne Technologies position performs unexpectedly, Global Warming 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 Global Warming will offset losses from the drop in Global Warming's long position.

The idea behind Teledyne Technologies Incorporated and Global Warming Solut pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.