Correlation Between Tfa Alphagen and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Tfa Alphagen 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 Tfa Alphagen and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tfa Alphagen Growth and Tekla Healthcare Investors, you can compare the effects of market volatilities on Tfa Alphagen 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 Tfa Alphagen with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tfa Alphagen and Tekla Healthcare.
Diversification Opportunities for Tfa Alphagen and Tekla Healthcare
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tfa and Tekla is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Tfa Alphagen Growth 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 Tfa Alphagen 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 Tfa Alphagen Growth 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 Tfa Alphagen i.e., Tfa Alphagen and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Tfa Alphagen and Tekla Healthcare
Assuming the 90 days horizon Tfa Alphagen Growth is expected to generate 0.98 times more return on investment than Tekla Healthcare. However, Tfa Alphagen Growth is 1.02 times less risky than Tekla Healthcare. It trades about 0.08 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 798.00 in Tfa Alphagen Growth on October 11, 2024 and sell it today you would earn a total of 309.00 from holding Tfa Alphagen Growth or generate 38.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tfa Alphagen Growth vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Tfa Alphagen Growth |
| Tekla Healthcare Inv |
Tfa Alphagen and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tfa Alphagen and Tekla Healthcare
The main advantage of trading using opposite Tfa Alphagen and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tfa Alphagen 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.| Tfa Alphagen vs. Millerhoward High Income | Tfa Alphagen vs. Dunham High Yield | Tfa Alphagen vs. Siit High Yield | Tfa Alphagen vs. Lgm Risk Managed |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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