Correlation Between Tekla Life and Aberdeen Global
Can any of the company-specific risk be diversified away by investing in both Tekla Life and Aberdeen Global 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 Life and Aberdeen Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekla Life Sciences and Aberdeen Global Premier, you can compare the effects of market volatilities on Tekla Life and Aberdeen Global 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 Life with a short position of Aberdeen Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Life and Aberdeen Global.
Diversification Opportunities for Tekla Life and Aberdeen Global
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tekla and Aberdeen is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Life Sciences and Aberdeen Global Premier in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aberdeen Global Premier and Tekla Life 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 Life Sciences are associated (or correlated) with Aberdeen Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aberdeen Global Premier has no effect on the direction of Tekla Life i.e., Tekla Life and Aberdeen Global go up and down completely randomly.
Pair Corralation between Tekla Life and Aberdeen Global
Considering the 90-day investment horizon Tekla Life is expected to generate 1.37 times less return on investment than Aberdeen Global. In addition to that, Tekla Life is 1.11 times more volatile than Aberdeen Global Premier. It trades about 0.03 of its total potential returns per unit of risk. Aberdeen Global Premier is currently generating about 0.05 per unit of volatility. If you would invest 332.00 in Aberdeen Global Premier on September 3, 2024 and sell it today you would earn a total of 109.00 from holding Aberdeen Global Premier or generate 32.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Life Sciences vs. Aberdeen Global Premier
Performance |
| Timeline |
| Tekla Life Sciences |
| Aberdeen Global Premier |
Tekla Life and Aberdeen Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Life and Aberdeen Global
The main advantage of trading using opposite Tekla Life and Aberdeen Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Life position performs unexpectedly, Aberdeen Global 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 Aberdeen Global will offset losses from the drop in Aberdeen Global's long position.| Tekla Life vs. Tekla World Healthcare | Tekla Life vs. Tekla Healthcare Opportunities | Tekla Life vs. Royce Value Closed | Tekla Life vs. John Hancock Financial |
| Aberdeen Global vs. Tekla Healthcare Investors | Aberdeen Global vs. Tekla Life Sciences | Aberdeen Global vs. Cohen Steers Reit | Aberdeen Global 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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