Correlation Between Aqr Equity and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Aqr Equity 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 Aqr Equity and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Equity Market and Tekla Healthcare Opportunities, you can compare the effects of market volatilities on Aqr Equity 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 Aqr Equity with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Equity and Tekla Healthcare.
Diversification Opportunities for Aqr Equity and Tekla Healthcare
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Aqr and Tekla is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Equity Market and Tekla Healthcare Opportunities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Opp and Aqr Equity 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 Aqr Equity Market 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 Opp has no effect on the direction of Aqr Equity i.e., Aqr Equity and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Aqr Equity and Tekla Healthcare
Assuming the 90 days horizon Aqr Equity Market is expected to generate 0.27 times more return on investment than Tekla Healthcare. However, Aqr Equity Market is 3.73 times less risky than Tekla Healthcare. It trades about 0.32 of its potential returns per unit of risk. Tekla Healthcare Opportunities is currently generating about 0.03 per unit of risk. If you would invest 988.00 in Aqr Equity Market on September 4, 2024 and sell it today you would earn a total of 27.00 from holding Aqr Equity Market or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Equity Market vs. Tekla Healthcare Opportunities
Performance |
| Timeline |
| Aqr Equity Market |
| Tekla Healthcare Opp |
Aqr Equity and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Equity and Tekla Healthcare
The main advantage of trading using opposite Aqr Equity and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Equity 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.| Aqr Equity vs. Tekla Healthcare Opportunities | Aqr Equity vs. Health Biotchnology Portfolio | Aqr Equity vs. Fidelity Advisor Health | Aqr Equity vs. Alphacentric Lifesci Healthcare |
| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Cohen Steers Reit | Tekla Healthcare 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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