Correlation Between Teleflex Incorporated and Nabors Energy

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

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

Diversification Opportunities for Teleflex Incorporated and Nabors Energy

-0.32

Correlation Coefficient

Teleflex Incorporated  Nabors Energy

Very good diversification

The 3 months correlation between Teleflex and Nabors is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Teleflex Incorporated and Nabors Energy Transition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nabors Energy Transition 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 Nabors Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nabors Energy Transition has no effect on the direction of Teleflex Incorporated i.e., Teleflex Incorporated and Nabors Energy go up and down completely randomly.

Pair Corralation between Teleflex Incorporated and Nabors Energy

Considering the 90-day investment horizon Teleflex Incorporated is expected to under-perform the Nabors Energy. In addition to that, Teleflex Incorporated is 5.42 times more volatile than Nabors Energy Transition. It trades about -0.03 of its total potential returns per unit of risk. Nabors Energy Transition is currently generating about 0.11 per unit of volatility. If you would invest  1,103  in Nabors Energy Transition on May 16, 2025 and sell it today you would earn a total of  26.00  from holding Nabors Energy Transition or generate 2.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Teleflex Incorporated  vs.  Nabors Energy Transition

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.

Nabors Energy Transition

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Nabors Energy Transition are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Nabors Energy is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Teleflex Incorporated and Nabors Energy

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

The idea behind Teleflex Incorporated and Nabors Energy Transition 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.