Correlation Between Tekla Healthcare and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Cohen Steers 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 Cohen Steers 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 Cohen Steers Prfrd, you can compare the effects of market volatilities on Tekla Healthcare and Cohen Steers 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 Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Cohen Steers.
Diversification Opportunities for Tekla Healthcare and Cohen Steers
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tekla and Cohen is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Cohen Steers Prfrd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Prfrd 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 Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Prfrd has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Cohen Steers go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Cohen Steers
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 10.6 times more return on investment than Cohen Steers. However, Tekla Healthcare is 10.6 times more volatile than Cohen Steers Prfrd. It trades about 0.03 of its potential returns per unit of risk. Cohen Steers Prfrd is currently generating about 0.03 per unit of risk. If you would invest 2,073 in Tekla Healthcare Opportunities on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Tekla Healthcare Opportunities or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Cohen Steers Prfrd
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Cohen Steers Prfrd |
Tekla Healthcare and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Cohen Steers
The main advantage of trading using opposite Tekla Healthcare and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Cohen Steers 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 Cohen Steers will offset losses from the drop in Cohen Steers' 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 |
| Cohen Steers vs. Aqr Managed Futures | Cohen Steers vs. Cref Inflation Linked Bond | Cohen Steers vs. The Hartford Inflation | Cohen Steers vs. American Funds Inflation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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