Correlation Between Teleflex Incorporated and Comstock Holding

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

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

Diversification Opportunities for Teleflex Incorporated and Comstock Holding

0.64

Correlation Coefficient

Teleflex Incorporated  Comstock Holding

Poor diversification

The 3 months correlation between Teleflex and Comstock is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Comstock Holding Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comstock Holding Com 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 Comstock Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comstock Holding Com has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Comstock Holding go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Comstock Holding

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Comstock Holding. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 2.0 times less risky than Comstock Holding. The stock trades about -0.01 of its potential returns per unit of risk. The Comstock Holding Companies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  480.00  in Comstock Holding Companies on September 26, 2024 and sell it today you would earn a total of  322.00  from holding Comstock Holding Companies or generate 67.08% 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.  Comstock Holding Companies

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 inconsistent 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.

Comstock Holding Com

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Comstock Holding Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's fundamental indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Teleflex Incorporated and Comstock Holding

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

The idea behind Teleflex Incorporated and Comstock Holding Companies 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.