Correlation Between Teleflex Incorporated and Bioventus

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

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

Diversification Opportunities for Teleflex Incorporated and Bioventus

-0.04

Correlation Coefficient

Teleflex Incorporated  Bioventus

Good diversification

The 3 months correlation between Teleflex and Bioventus is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Bioventus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bioventus 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 Bioventus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bioventus has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Bioventus go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Bioventus

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Bioventus. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.4 times less risky than Bioventus. The stock trades about -0.02 of its potential returns per unit of risk. The Bioventus is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  620.00  in Bioventus on May 6, 2025 and sell it today you would lose (2.00) from holding Bioventus or give up 0.32% of portfolio value over 90 days.

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

Teleflex Incorporated  vs.  Bioventus

Teleflex Incorporated

Risk-Adjusted Performance

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 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.

Bioventus

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bioventus has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Bioventus is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Teleflex Incorporated and Bioventus

The main advantage of trading using opposite Teleflex Incorporated and Bioventus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Teleflex Incorporated position performs unexpectedly, Bioventus 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 Bioventus will offset losses from the drop in Bioventus' long position.

The idea behind Teleflex Incorporated and Bioventus 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 Transaction History module to view history of all your transactions and understand their impact on performance.