Correlation Between Cleantech Power and Teleflex Incorporated

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

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

Diversification Opportunities for Cleantech Power and Teleflex Incorporated

0.0

Correlation Coefficient

Cleantech Power  Teleflex Incorporated

Pay attention - limited upside

The 3 months correlation between Cleantech and Teleflex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cleantech Power Corp and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Cleantech Power 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 Cleantech Power Corp 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 Cleantech Power i.e., Cleantech Power and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Cleantech Power and Teleflex Incorporated

If you would invest  0.59  in Cleantech Power Corp on May 21, 2025 and sell it today you would earn a total of  0.00  from holding Cleantech Power Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Cleantech Power Corp  vs.  Teleflex Incorporated

Cleantech Power Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Cleantech Power Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Cleantech Power is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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 Cleantech Power and Teleflex Incorporated

The main advantage of trading using opposite Cleantech Power and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cleantech Power 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 Cleantech Power Corp 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.