Correlation Between Tekla Healthcare and Bear Profund
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Bear Profund 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 Tekla Healthcare and Bear Profund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekla Healthcare Opportunities and Bear Profund Bear, you can compare the effects of market volatilities on Tekla Healthcare and Bear Profund 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 Tekla Healthcare with a short position of Bear Profund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Bear Profund.
Diversification Opportunities for Tekla Healthcare and Bear Profund
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tekla and Bear is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Bear Profund Bear in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bear Profund Bear and Tekla Healthcare 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 Tekla Healthcare Opportunities are associated (or correlated) with Bear Profund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bear Profund Bear has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Bear Profund go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Bear Profund
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 2.04 times more return on investment than Bear Profund. However, Tekla Healthcare is 2.04 times more volatile than Bear Profund Bear. It trades about 0.03 of its potential returns per unit of risk. Bear Profund Bear is currently generating about -0.35 per unit of risk. If you would invest 2,058 in Tekla Healthcare Opportunities on September 5, 2024 and sell it today you would earn a total of 14.00 from holding Tekla Healthcare Opportunities or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Bear Profund Bear
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Bear Profund Bear |
Tekla Healthcare and Bear Profund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Bear Profund
The main advantage of trading using opposite Tekla Healthcare and Bear Profund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Bear Profund 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 Bear Profund will offset losses from the drop in Bear Profund's long position.| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Cohen Steers Reit | Tekla Healthcare vs. XAI Octagon Floating |
| Bear Profund vs. Short Real Estate | Bear Profund vs. Short Real Estate | Bear Profund vs. Ultrashort Mid Cap Profund | Bear Profund vs. Technology Ultrasector Profund |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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