Correlation Between Voya Asia and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Voya Asia 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 Voya Asia and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Voya Asia Pacific and Tekla Healthcare Investors, you can compare the effects of market volatilities on Voya Asia 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 Voya Asia with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Voya Asia and Tekla Healthcare.
Diversification Opportunities for Voya Asia and Tekla Healthcare
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Voya and Tekla is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Voya Asia Pacific 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 Voya Asia 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 Voya Asia Pacific 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 Voya Asia i.e., Voya Asia and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Voya Asia and Tekla Healthcare
Considering the 90-day investment horizon Voya Asia Pacific is expected to generate 0.69 times more return on investment than Tekla Healthcare. However, Voya Asia Pacific is 1.46 times less risky than Tekla Healthcare. It trades about -0.11 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.15 per unit of risk. If you would invest 644.00 in Voya Asia Pacific on September 3, 2024 and sell it today you would lose (13.00) from holding Voya Asia Pacific or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Voya Asia Pacific vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Voya Asia Pacific |
| Tekla Healthcare Inv |
Voya Asia and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Voya Asia and Tekla Healthcare
The main advantage of trading using opposite Voya Asia and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Voya Asia 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.| Voya Asia vs. Tekla Healthcare Investors | Voya Asia vs. Tekla Life Sciences | Voya Asia vs. Cohen Steers Reit | Voya Asia vs. XAI Octagon Floating |
| Tekla Healthcare vs. Tekla Healthcare Opportunities | Tekla Healthcare vs. Eaton Vance Tax | Tekla Healthcare vs. Tekla World Healthcare | Tekla Healthcare vs. Cohen Steers Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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