Correlation Between Puyi and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Puyi 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 Puyi and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Puyi Inc ADR and Tekla Healthcare Investors, you can compare the effects of market volatilities on Puyi 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 Puyi with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puyi and Tekla Healthcare.
Diversification Opportunities for Puyi and Tekla Healthcare
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Puyi and Tekla is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Puyi Inc ADR 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 Puyi 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 Puyi Inc ADR 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 Puyi i.e., Puyi and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Puyi and Tekla Healthcare
Given the investment horizon of 90 days Puyi Inc ADR is expected to generate 5.37 times more return on investment than Tekla Healthcare. However, Puyi is 5.37 times more volatile than Tekla Healthcare Investors. It trades about 0.01 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.02 per unit of risk. If you would invest 709.00 in Puyi Inc ADR on August 28, 2024 and sell it today you would lose (89.00) from holding Puyi Inc ADR or give up 12.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 31.72% |
| Values | Daily Returns |
Puyi Inc ADR vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Puyi Inc ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Tekla Healthcare Inv |
Puyi and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puyi and Tekla Healthcare
The main advantage of trading using opposite Puyi and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puyi 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.| Puyi vs. Eaton Vance National | Puyi vs. Invesco High Income | Puyi vs. Blackrock Muniholdings Ny | Puyi vs. Nuveen California Select |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |