Correlation Between Tekla Healthcare and Kkr Income
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Kkr Income 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 Tekla Healthcare and Kkr Income into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekla Healthcare Investors and Kkr Income Opportunities, you can compare the effects of market volatilities on Tekla Healthcare and Kkr Income 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 Tekla Healthcare with a short position of Kkr Income. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Kkr Income.
Diversification Opportunities for Tekla Healthcare and Kkr Income
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tekla and Kkr is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Kkr Income Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kkr Income Opportunities and Tekla Healthcare 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 Tekla Healthcare Investors are associated (or correlated) with Kkr Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kkr Income Opportunities has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Kkr Income go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Kkr Income
Considering the 90-day investment horizon Tekla Healthcare Investors is expected to generate 1.62 times more return on investment than Kkr Income. However, Tekla Healthcare is 1.62 times more volatile than Kkr Income Opportunities. It trades about 0.08 of its potential returns per unit of risk. Kkr Income Opportunities is currently generating about 0.13 per unit of risk. If you would invest 1,404 in Tekla Healthcare Investors on September 4, 2024 and sell it today you would earn a total of 365.00 from holding Tekla Healthcare Investors or generate 26.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Investors vs. Kkr Income Opportunities
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Kkr Income Opportunities |
Tekla Healthcare and Kkr Income Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Kkr Income
The main advantage of trading using opposite Tekla Healthcare and Kkr Income positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Kkr Income 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 Kkr Income will offset losses from the drop in Kkr Income's long position.| Tekla Healthcare vs. Tekla Healthcare Opportunities | Tekla Healthcare vs. Eaton Vance Tax | Tekla Healthcare vs. Tekla World Healthcare | Tekla Healthcare vs. Cohen Steers Limited |
| Kkr Income vs. Nuveen Floating Rate | Kkr Income vs. Blackrock Muni Intermediate | Kkr Income vs. Eaton Vance Senior | Kkr Income vs. Nuveen Dynamic Municipal |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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