Correlation Between Teleflex Incorporated and Guardian Pharmacy

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

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

Diversification Opportunities for Teleflex Incorporated and Guardian Pharmacy

-0.37

Correlation Coefficient

Teleflex Incorporated  Guardian Pharmacy

Very good diversification

The 3 months correlation between Teleflex and Guardian is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Guardian Pharmacy Services, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guardian Pharmacy 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 Guardian Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guardian Pharmacy has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Guardian Pharmacy go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Guardian Pharmacy

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Guardian Pharmacy. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.58 times less risky than Guardian Pharmacy. The stock trades about -0.18 of its potential returns per unit of risk. The Guardian Pharmacy Services, is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  1,600  in Guardian Pharmacy Services, on September 12, 2024 and sell it today you would earn a total of  831.00  from holding Guardian Pharmacy Services, or generate 51.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	84.38%
Values	Daily Returns

Teleflex Incorporated  vs.  Guardian Pharmacy Services,

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 uncertain 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.

Guardian Pharmacy

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Guardian Pharmacy Services, are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady fundamental indicators, Guardian Pharmacy displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleflex Incorporated and Guardian Pharmacy

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

The idea behind Teleflex Incorporated and Guardian Pharmacy Services, 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.