Correlation Between Winland Holdings and Teledyne Technologies

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

By analyzing existing cross correlation between Winland Holdings and Teledyne Technologies Incorporated, you can compare the effects of market volatilities on Winland Holdings and Teledyne Technologies 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 Winland Holdings with a short position of Teledyne Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Winland Holdings and Teledyne Technologies.

Diversification Opportunities for Winland Holdings and Teledyne Technologies

0.0

Correlation Coefficient

Winland Holdings  Teledyne Technologies

Pay attention - limited upside

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

Pair Corralation between Winland Holdings and Teledyne Technologies

If you would invest  46,523  in Teledyne Technologies Incorporated on December 29, 2024 and sell it today you would earn a total of  3,029  from holding Teledyne Technologies Incorporated or generate 6.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Winland Holdings  vs.  Teledyne Technologies Incorpor

Winland Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Winland Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong essential indicators, Winland Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Teledyne Technologies

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Teledyne Technologies Incorporated are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain fundamental indicators, Teledyne Technologies may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Winland Holdings and Teledyne Technologies

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

The idea behind Winland Holdings and Teledyne Technologies 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.