Correlation Between AngioDynamics and Teleflex Incorporated

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

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

Diversification Opportunities for AngioDynamics and Teleflex Incorporated

0.48

Correlation Coefficient

AngioDynamics  Teleflex Incorporated

Very weak diversification

The 3 months correlation between AngioDynamics and Teleflex is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding AngioDynamics and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and AngioDynamics 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 AngioDynamics 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 AngioDynamics i.e., AngioDynamics and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between AngioDynamics and Teleflex Incorporated

Given the investment horizon of 90 days AngioDynamics is expected to generate 1.64 times more return on investment than Teleflex Incorporated. However, AngioDynamics is 1.64 times more volatile than Teleflex Incorporated. It trades about 0.01 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about -0.01 per unit of risk. If you would invest  917.00  in AngioDynamics on May 15, 2025 and sell it today you would lose (11.00) from holding AngioDynamics or give up 1.2% of portfolio value over 90 days.

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

AngioDynamics  vs.  Teleflex Incorporated

AngioDynamics

Risk-Adjusted Performance

Weakest

Over the last 90 days AngioDynamics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, AngioDynamics is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Teleflex Incorporated

Risk-Adjusted Performance

Weakest

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

Pair Trading with AngioDynamics and Teleflex Incorporated

The main advantage of trading using opposite AngioDynamics and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AngioDynamics 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 AngioDynamics 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.