Correlation Between Aberdeen Global and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Aberdeen Global and Tekla Healthcare 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 Aberdeen Global and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aberdeen Global Premier and Tekla Healthcare Investors, you can compare the effects of market volatilities on Aberdeen Global and Tekla Healthcare 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 Aberdeen Global with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aberdeen Global and Tekla Healthcare.
Diversification Opportunities for Aberdeen Global and Tekla Healthcare
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Aberdeen and Tekla is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Aberdeen Global Premier and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv and Aberdeen Global 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 Aberdeen Global Premier are associated (or correlated) with Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Aberdeen Global i.e., Aberdeen Global and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Aberdeen Global and Tekla Healthcare
Considering the 90-day investment horizon Aberdeen Global Premier is expected to generate 1.42 times more return on investment than Tekla Healthcare. However, Aberdeen Global is 1.42 times more volatile than Tekla Healthcare Investors. It trades about 0.08 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.08 per unit of risk. If you would invest 315.00 in Aberdeen Global Premier on September 4, 2024 and sell it today you would earn a total of 118.00 from holding Aberdeen Global Premier or generate 37.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aberdeen Global Premier vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Aberdeen Global Premier |
| Tekla Healthcare Inv |
Aberdeen Global and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aberdeen Global and Tekla Healthcare
The main advantage of trading using opposite Aberdeen Global and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aberdeen Global position performs unexpectedly, Tekla Healthcare 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Aberdeen Global vs. Aberdeen Total Dynamic | Aberdeen Global vs. Alliancebernstein National Municipal | Aberdeen Global vs. Aberdeen Standard Global | Aberdeen Global vs. BlackRock Energy and |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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