Correlation Between Teleflex Incorporated and Stryker

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Teleflex Incorporated and Stryker 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 Stryker into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Teleflex Incorporated and Stryker, you can compare the effects of market volatilities on Teleflex Incorporated and Stryker 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 Stryker. Check out your portfolio center. Please also check ongoing floating volatility patterns of Teleflex Incorporated and Stryker.

Diversification Opportunities for Teleflex Incorporated and Stryker

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Teleflex and Stryker is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Stryker in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryker 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 Stryker. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryker has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Stryker go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Stryker

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Stryker. In addition to that, Teleflex Incorporated is 1.38 times more volatile than Stryker. It trades about -0.02 of its total potential returns per unit of risk. Stryker is currently generating about 0.08 per unit of volatility. If you would invest  28,527  in Stryker on December 29, 2023 and sell it today you would earn a total of  7,216  from holding Stryker or generate 25.3% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy99.6%
ValuesDaily Returns

Teleflex Incorporated  vs.  Stryker

 Performance 
       Timeline  
Teleflex Incorporated 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 latest inconsistent performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.
Stryker 

Risk-Adjusted Performance

19 of 100

 
Low
 
High
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Stryker are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite quite inconsistent basic indicators, Stryker disclosed solid returns over the last few months and may actually be approaching a breakup point.

Teleflex Incorporated and Stryker Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Teleflex Incorporated and Stryker

The main advantage of trading using opposite Teleflex Incorporated and Stryker positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Stryker 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 Stryker will offset losses from the drop in Stryker's long position.
The idea behind Teleflex Incorporated and Stryker 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.
Check out your portfolio center.
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

Other Complementary Tools

Stocks Directory
Find actively traded stocks across global markets
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA