Correlation Between Teleflex Incorporated and Celsius Holdings

Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Celsius Holdings 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 Celsius Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Teleflex Incorporated and Celsius Holdings, you can compare the effects of market volatilities on Teleflex Incorporated and Celsius Holdings 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 Celsius Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Celsius Holdings.

Diversification Opportunities for Teleflex Incorporated and Celsius Holdings

0.69

Correlation Coefficient

Teleflex Incorporated  Celsius Holdings

Poor diversification

The 3 months correlation between Teleflex and Celsius is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Celsius Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celsius Holdings 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 Celsius Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celsius Holdings has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Celsius Holdings go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Celsius Holdings

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Celsius Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 2.68 times less risky than Celsius Holdings. The stock trades about -0.27 of its potential returns per unit of risk. The Celsius Holdings is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  2,579  in Celsius Holdings on September 17, 2024 and sell it today you would earn a total of  600.00  from holding Celsius Holdings or generate 23.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Teleflex Incorporated  vs.  Celsius Holdings

Teleflex Incorporated

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Teleflex Incorporated has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Celsius Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celsius Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong essential indicators, Celsius Holdings is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Teleflex Incorporated and Celsius Holdings

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

The idea behind Teleflex Incorporated and Celsius Holdings 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.