Correlation Between Teleflex Incorporated and Tritent International

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

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

Diversification Opportunities for Teleflex Incorporated and Tritent International

0.0

Correlation Coefficient

Teleflex Incorporated  Tritent International

Pay attention - limited upside

The 3 months correlation between Teleflex and Tritent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Tritent International Agricult in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tritent International 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 Tritent International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tritent International has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Tritent International go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Tritent International

Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 0.18 times more return on investment than Tritent International. However, Teleflex Incorporated is 5.46 times less risky than Tritent International. It trades about -0.17 of its potential returns per unit of risk. Tritent International Agriculture is currently generating about -0.13 per unit of risk. If you would invest  23,321  in Teleflex Incorporated on October 25, 2024 and sell it today you would lose (5,245) from holding Teleflex Incorporated or give up 22.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.33%
Values	Daily Returns

Teleflex Incorporated  vs.  Tritent International Agricult

Teleflex Incorporated

Risk-Adjusted Performance

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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.

Tritent International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tritent International Agriculture has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's primary indicators remain quite persistent which may send shares a bit higher in February 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Teleflex Incorporated and Tritent International

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

The idea behind Teleflex Incorporated and Tritent International Agriculture 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.