Correlation Between Teleflex Incorporated and Masimo

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

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

Diversification Opportunities for Teleflex Incorporated and Masimo

-0.54

Correlation Coefficient

Teleflex Incorporated  Masimo

Excellent diversification

The 3 months correlation between Teleflex and Masimo is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Masimo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Masimo 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 Masimo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Masimo has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Masimo go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Masimo

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Masimo. But the stock apears to be less risky and, when comparing its historical volatility, Teleflex Incorporated is 1.38 times less risky than Masimo. The stock trades about -0.05 of its potential returns per unit of risk. The Masimo is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  16,761  in Masimo on June 30, 2025 and sell it today you would lose (2,621) from holding Masimo or give up 15.64% of portfolio value over 90 days.

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

Teleflex Incorporated  vs.  Masimo

Teleflex Incorporated

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 1 (%) 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.

Masimo

Risk-Adjusted Performance

Weakest

Over the last 90 days Masimo has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in October 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Teleflex Incorporated and Masimo

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

The idea behind Teleflex Incorporated and Masimo 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.