Correlation Between Teleflex Incorporated and Siriuspoint

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

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

Diversification Opportunities for Teleflex Incorporated and Siriuspoint

-0.7

Correlation Coefficient

Teleflex Incorporated  Siriuspoint

Excellent diversification

The 3 months correlation between Teleflex and Siriuspoint is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Siriuspoint go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Siriuspoint

Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 0.31 times more return on investment than Siriuspoint. However, Teleflex Incorporated is 3.19 times less risky than Siriuspoint. It trades about -0.12 of its potential returns per unit of risk. Siriuspoint is currently generating about -0.05 per unit of risk. If you would invest  18,362  in Teleflex Incorporated on October 12, 2024 and sell it today you would lose (566.00) from holding Teleflex Incorporated or give up 3.08% of portfolio value over 90 days.

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

Teleflex Incorporated  vs.  Siriuspoint

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 February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Siriuspoint

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Siriuspoint are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Siriuspoint may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Teleflex Incorporated and Siriuspoint

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

The idea behind Teleflex Incorporated and Siriuspoint 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.