Correlation Between Cohen Steers and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Cohen Steers 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 Cohen Steers and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohen Steers Qualityome and Tekla Healthcare Investors, you can compare the effects of market volatilities on Cohen Steers 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 Cohen Steers with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohen Steers and Tekla Healthcare.
Diversification Opportunities for Cohen Steers and Tekla Healthcare
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cohen and Tekla is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Cohen Steers Qualityome 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 Cohen Steers 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 Cohen Steers Qualityome 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 Cohen Steers i.e., Cohen Steers and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Cohen Steers and Tekla Healthcare
Considering the 90-day investment horizon Cohen Steers is expected to generate 1.34 times less return on investment than Tekla Healthcare. In addition to that, Cohen Steers is 1.23 times more volatile than Tekla Healthcare Investors. It trades about 0.27 of its total potential returns per unit of risk. Tekla Healthcare Investors is currently generating about 0.44 per unit of volatility. If you would invest 1,672 in Tekla Healthcare Investors on November 9, 2024 and sell it today you would earn a total of 144.00 from holding Tekla Healthcare Investors or generate 8.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohen Steers Qualityome vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Cohen Steers Qualityome |
| Tekla Healthcare Inv |
Cohen Steers and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohen Steers and Tekla Healthcare
The main advantage of trading using opposite Cohen Steers and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohen Steers 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.| Cohen Steers vs. Cohen And Steers | Cohen Steers vs. Reaves Utility If | Cohen Steers vs. Cohen Steers Total | Cohen Steers vs. Pimco Dynamic Income |
| 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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