Correlation Between Werewolf Therapeutics and Teleflex Incorporated

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

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

Diversification Opportunities for Werewolf Therapeutics and Teleflex Incorporated

0.27

Correlation Coefficient

Werewolf Therapeutics  Teleflex Incorporated

Modest diversification

The 3 months correlation between Werewolf and Teleflex is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Werewolf Therapeutics and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Werewolf Therapeutics 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 Werewolf Therapeutics 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 Werewolf Therapeutics i.e., Werewolf Therapeutics and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Werewolf Therapeutics and Teleflex Incorporated

Given the investment horizon of 90 days Werewolf Therapeutics is expected to generate 2.42 times more return on investment than Teleflex Incorporated. However, Werewolf Therapeutics is 2.42 times more volatile than Teleflex Incorporated. It trades about 0.09 of its potential returns per unit of risk. Teleflex Incorporated is currently generating about 0.04 per unit of risk. If you would invest  129.00  in Werewolf Therapeutics on July 14, 2025 and sell it today you would earn a total of  34.00  from holding Werewolf Therapeutics or generate 26.36% return on investment over 90 days.

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

Werewolf Therapeutics  vs.  Teleflex Incorporated

Werewolf Therapeutics

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Werewolf Therapeutics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Werewolf Therapeutics disclosed solid returns over the last few months and may actually be approaching a breakup point.

Teleflex Incorporated

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. 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 Werewolf Therapeutics and Teleflex Incorporated

The main advantage of trading using opposite Werewolf Therapeutics and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Werewolf Therapeutics 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 Werewolf Therapeutics 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.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .