Correlation Between Cooper Companies, and Teleflex Incorporated

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

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

Diversification Opportunities for Cooper Companies, and Teleflex Incorporated

-0.31

Correlation Coefficient

Cooper Companies,  Teleflex Incorporated

Very good diversification

The 3 months correlation between Cooper and Teleflex is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Cooper Companies, and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Cooper Companies, 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 The Cooper Companies, 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 Cooper Companies, i.e., Cooper Companies, and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Cooper Companies, and Teleflex Incorporated

Considering the 90-day investment horizon The Cooper Companies, is expected to under-perform the Teleflex Incorporated. In addition to that, Cooper Companies, is 2.13 times more volatile than Teleflex Incorporated. It trades about -0.12 of its total potential returns per unit of risk. Teleflex Incorporated is currently generating about 0.25 per unit of volatility. If you would invest  11,986  in Teleflex Incorporated on June 17, 2025 and sell it today you would earn a total of  1,045  from holding Teleflex Incorporated or generate 8.72% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

The Cooper Companies,  vs.  Teleflex Incorporated

Cooper Companies,

Risk-Adjusted Performance

Weakest

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

Teleflex Incorporated

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, Teleflex Incorporated may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Cooper Companies, and Teleflex Incorporated

The main advantage of trading using opposite Cooper Companies, and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cooper Companies, 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 The Cooper Companies, 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.