Correlation Between Elfun Trusts and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Elfun Trusts 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 Elfun Trusts and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Elfun Trusts Elfun and Tekla Healthcare Investors, you can compare the effects of market volatilities on Elfun Trusts 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 Elfun Trusts with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Elfun Trusts and Tekla Healthcare.
Diversification Opportunities for Elfun Trusts and Tekla Healthcare
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Elfun and Tekla is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Elfun Trusts Elfun 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 Elfun Trusts 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 Elfun Trusts Elfun 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 Elfun Trusts i.e., Elfun Trusts and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Elfun Trusts and Tekla Healthcare
Assuming the 90 days horizon Elfun Trusts Elfun is expected to generate 0.51 times more return on investment than Tekla Healthcare. However, Elfun Trusts Elfun is 1.97 times less risky than Tekla Healthcare. It trades about 0.04 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.16 per unit of risk. If you would invest 9,930 in Elfun Trusts Elfun on September 13, 2024 and sell it today you would earn a total of 56.00 from holding Elfun Trusts Elfun or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Elfun Trusts Elfun vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Elfun Trusts Elfun |
| Tekla Healthcare Inv |
Elfun Trusts and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Elfun Trusts and Tekla Healthcare
The main advantage of trading using opposite Elfun Trusts and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Elfun Trusts 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.| Elfun Trusts vs. T Rowe Price | Elfun Trusts vs. Kinetics Market Opportunities | Elfun Trusts vs. Barings Emerging Markets | Elfun Trusts vs. Calvert Developed Market |
| Tekla Healthcare vs. Fidelity Advisor Diversified | Tekla Healthcare vs. Delaware Limited Term Diversified | Tekla Healthcare vs. Adams Diversified Equity | Tekla Healthcare vs. Pioneer Diversified High |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |