Correlation Between Turbo Energy, and Teleflex Incorporated

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

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

Diversification Opportunities for Turbo Energy, and Teleflex Incorporated

0.69

Correlation Coefficient

Turbo Energy,  Teleflex Incorporated

Poor diversification

The 3 months correlation between Turbo and Teleflex is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Turbo Energy, SA and Teleflex Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Teleflex Incorporated and Turbo Energy, 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 Turbo Energy, SA 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 Turbo Energy, i.e., Turbo Energy, and Teleflex Incorporated go up and down completely randomly.

Pair Corralation between Turbo Energy, and Teleflex Incorporated

Given the investment horizon of 90 days Turbo Energy, SA is expected to under-perform the Teleflex Incorporated. But the stock apears to be less risky and, when comparing its historical volatility, Turbo Energy, SA is 1.04 times less risky than Teleflex Incorporated. The stock trades about -0.11 of its potential returns per unit of risk. The Teleflex Incorporated is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest  12,478  in Teleflex Incorporated on May 9, 2025 and sell it today you would lose (1,271) from holding Teleflex Incorporated or give up 10.19% of portfolio value over 90 days.

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

Turbo Energy, SA  vs.  Teleflex Incorporated

Turbo Energy, SA

Risk-Adjusted Performance

Weakest

Over the last 90 days Turbo Energy, SA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

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 latest uncertain performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Turbo Energy, and Teleflex Incorporated

The main advantage of trading using opposite Turbo Energy, and Teleflex Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turbo Energy, 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 Turbo Energy, SA 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.