Correlation Between Emerging Europe and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Emerging Europe 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 Emerging Europe and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Europe Fund and Tekla Healthcare Opportunities, you can compare the effects of market volatilities on Emerging Europe 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 Emerging Europe with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Europe and Tekla Healthcare.
Diversification Opportunities for Emerging Europe and Tekla Healthcare
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emerging and Tekla is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Europe Fund and Tekla Healthcare Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Opp and Emerging Europe 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 Emerging Europe Fund 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 Opp has no effect on the direction of Emerging Europe i.e., Emerging Europe and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Emerging Europe and Tekla Healthcare
If you would invest 2,082 in Tekla Healthcare Opportunities on September 2, 2024 and sell it today you would earn a total of 6.00 from holding Tekla Healthcare Opportunities or generate 0.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Emerging Europe Fund vs. Tekla Healthcare Opportunities
Performance |
| Timeline |
| Emerging Europe |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tekla Healthcare Opp |
Emerging Europe and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Europe and Tekla Healthcare
The main advantage of trading using opposite Emerging Europe and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Europe 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.| Emerging Europe vs. Jhancock Real Estate | Emerging Europe vs. Commonwealth Real Estate | Emerging Europe vs. Msif Real Estate | Emerging Europe vs. Deutsche Real Estate |
| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Cohen Steers Reit | Tekla Healthcare vs. XAI Octagon Floating |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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