Correlation Between The Hartford and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both The Hartford 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 The Hartford and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hartford Healthcare and Tekla Healthcare Investors, you can compare the effects of market volatilities on The Hartford 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 The Hartford with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of The Hartford and Tekla Healthcare.
Diversification Opportunities for The Hartford and Tekla Healthcare
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between The and Tekla is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding The Hartford Healthcare 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 The Hartford 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 The Hartford Healthcare 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 The Hartford i.e., The Hartford and Tekla Healthcare go up and down completely randomly.
Pair Corralation between The Hartford and Tekla Healthcare
Assuming the 90 days horizon The Hartford Healthcare is expected to under-perform the Tekla Healthcare. In addition to that, The Hartford is 1.33 times more volatile than Tekla Healthcare Investors. It trades about -0.26 of its total potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.13 per unit of volatility. If you would invest 1,920 in Tekla Healthcare Investors on October 10, 2024 and sell it today you would lose (52.00) from holding Tekla Healthcare Investors or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hartford Healthcare vs. Tekla Healthcare Investors
Performance |
| Timeline |
| The Hartford Healthcare |
| Tekla Healthcare Inv |
The Hartford and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with The Hartford and Tekla Healthcare
The main advantage of trading using opposite The Hartford and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if The Hartford 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.| The Hartford vs. The Hartford Healthcare | The Hartford vs. Hartford Healthcare Hls | The Hartford vs. The Hartford Global | The Hartford vs. Hartford Healthcare Hls |
| Tekla Healthcare vs. T Rowe Price | Tekla Healthcare vs. Tfa Alphagen Growth | Tekla Healthcare vs. Eip Growth And | Tekla Healthcare vs. Small Pany Growth |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |