Correlation Between Tekla Life and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Tekla Life and Cohen Steers 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 Cohen Steers 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 Cohen Steers Total, you can compare the effects of market volatilities on Tekla Life and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Life and Cohen Steers.
Diversification Opportunities for Tekla Life and Cohen Steers
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tekla and Cohen is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Life Sciences and Cohen Steers Total in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Total 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Total has no effect on the direction of Tekla Life i.e., Tekla Life and Cohen Steers go up and down completely randomly.
Pair Corralation between Tekla Life and Cohen Steers
Considering the 90-day investment horizon Tekla Life Sciences is expected to generate 1.29 times more return on investment than Cohen Steers. However, Tekla Life is 1.29 times more volatile than Cohen Steers Total. It trades about 0.03 of its potential returns per unit of risk. Cohen Steers Total is currently generating about 0.01 per unit of risk. If you would invest 1,176 in Tekla Life Sciences on October 19, 2024 and sell it today you would earn a total of 172.00 from holding Tekla Life Sciences or generate 14.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Life Sciences vs. Cohen Steers Total
Performance |
| Timeline |
| Tekla Life Sciences |
| Cohen Steers Total |
Tekla Life and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Life and Cohen Steers
The main advantage of trading using opposite Tekla Life and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Life position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Cohen Steers Reit | Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. BlackRock Science Tech |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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