Correlation Between Teleflex Incorporated and Monopar Therapeutics

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

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

Diversification Opportunities for Teleflex Incorporated and Monopar Therapeutics

0.2

Correlation Coefficient

Teleflex Incorporated  Monopar Therapeutics

Modest diversification

The 3 months correlation between Teleflex and Monopar is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Monopar Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monopar Therapeutics 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 Monopar Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monopar Therapeutics has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Monopar Therapeutics go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Monopar Therapeutics

Considering the 90-day investment horizon Teleflex Incorporated is expected to generate 10.12 times less return on investment than Monopar Therapeutics. But when comparing it to its historical volatility, Teleflex Incorporated is 3.32 times less risky than Monopar Therapeutics. It trades about 0.07 of its potential returns per unit of risk. Monopar Therapeutics is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  4,175  in Monopar Therapeutics on August 4, 2025 and sell it today you would earn a total of  4,441  from holding Monopar Therapeutics or generate 106.37% return on investment over 90 days.

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

Teleflex Incorporated  vs.  Monopar Therapeutics

Teleflex Incorporated

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Teleflex Incorporated are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Teleflex Incorporated may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Monopar Therapeutics

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Monopar Therapeutics are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Monopar Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Teleflex Incorporated and Monopar Therapeutics

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

The idea behind Teleflex Incorporated and Monopar Therapeutics 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.