Correlation Between Eagle Capital and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Eagle Capital 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 Eagle Capital and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eagle Capital Growth and Tekla Healthcare Opportunities, you can compare the effects of market volatilities on Eagle Capital 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 Eagle Capital with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Capital and Tekla Healthcare.
Diversification Opportunities for Eagle Capital and Tekla Healthcare
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eagle and Tekla is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Capital Growth 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 Eagle Capital 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 Eagle Capital Growth 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 Eagle Capital i.e., Eagle Capital and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Eagle Capital and Tekla Healthcare
Considering the 90-day investment horizon Eagle Capital Growth is expected to generate 1.28 times more return on investment than Tekla Healthcare. However, Eagle Capital is 1.28 times more volatile than Tekla Healthcare Opportunities. It trades about 0.11 of its potential returns per unit of risk. Tekla Healthcare Opportunities is currently generating about -0.04 per unit of risk. If you would invest 996.00 in Eagle Capital Growth on August 31, 2024 and sell it today you would earn a total of 44.00 from holding Eagle Capital Growth or generate 4.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eagle Capital Growth vs. Tekla Healthcare Opportunities
Performance |
| Timeline |
| Eagle Capital Growth |
| Tekla Healthcare Opp |
Eagle Capital and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eagle Capital and Tekla Healthcare
The main advantage of trading using opposite Eagle Capital and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Capital 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.| Eagle Capital vs. Eaton Vance New | Eagle Capital vs. Pimco New York | Eagle Capital vs. Nuveen Amt Free Municipal | Eagle Capital vs. Western Asset Municipal |
| Tekla Healthcare vs. MFS Investment Grade | Tekla Healthcare vs. Eaton Vance Municipal | Tekla Healthcare vs. DTF Tax Free | Tekla Healthcare vs. HUMANA INC |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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