Correlation Between INTNED and Teleflex Incorporated

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Can any of the company-specific risk be diversified away by investing in both INTNED and Teleflex Incorporated 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 INTNED and Teleflex Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTNED 4625 06 JAN 26 and Teleflex Incorporated, you can compare the effects of market volatilities on INTNED and Teleflex Incorporated 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 INTNED with a short position of Teleflex Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTNED and Teleflex Incorporated.

Diversification Opportunities for INTNED and Teleflex Incorporated

INTNEDTeleflexDiversified AwayINTNEDTeleflexDiversified Away100%
0.48
  Correlation Coefficient

Very weak diversification

The 3 months correlation between INTNED and Teleflex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding INTNED 4625 06 JAN 26 and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and INTNED 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 INTNED 4625 06 JAN 26 are associated (or correlated) with Teleflex Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Teleflex Incorporated has no effect on the direction of INTNED i.e., INTNED and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between INTNED and Teleflex Incorporated

Assuming the 90 days trading horizon INTNED 4625 06 JAN 26 is expected to generate 0.33 times more return on investment than Teleflex Incorporated. However, INTNED 4625 06 JAN 26 is 3.0 times less risky than Teleflex Incorporated. It trades about -0.23 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.35 per unit of risk. If you would invest  9,980  in INTNED 4625 06 JAN 26 on September 20, 2024 and sell it today you would lose (151.00) from holding INTNED 4625 06 JAN 26 or give up 1.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy61.9%
ValuesDaily Returns

INTNED 4625 06 JAN 26  vs.  Teleflex Incorporated

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-15-10-50
JavaScript chart by amCharts 3.21.1545685NAA4 TFX
       Timeline  
INTNED 4625 06 

Risk-Adjusted Performance

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Very Weak
Over the last 90 days INTNED 4625 06 JAN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, INTNED is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15252231239898.59999.5100100.5
Teleflex Incorporated 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
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.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec180190200210220230240250

INTNED and Teleflex Incorporated Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-0.29-0.0995-0.0668-0.0342-0.0032610.0240.05390.08380.190.39 1234567
JavaScript chart by amCharts 3.21.1545685NAA4 TFX
       Returns  

Pair Trading with INTNED and Teleflex Incorporated

The main advantage of trading using opposite INTNED and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTNED position performs unexpectedly, Teleflex Incorporated 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 Teleflex Incorporated will offset losses from the drop in Teleflex Incorporated's long position.
The idea behind INTNED 4625 06 JAN 26 and Teleflex Incorporated 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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