Correlation Between Tekla Healthcare and Delaware High-yield
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Delaware High-yield 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 Delaware High-yield 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 Delaware High Yield Opportunities, you can compare the effects of market volatilities on Tekla Healthcare and Delaware High-yield 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 Delaware High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Delaware High-yield.
Diversification Opportunities for Tekla Healthcare and Delaware High-yield
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tekla and Delaware is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Delaware High Yield Opportunit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware High Yield 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 Delaware High-yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware High Yield has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Delaware High-yield go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Delaware High-yield
Considering the 90-day investment horizon Tekla Healthcare is expected to generate 3.2 times less return on investment than Delaware High-yield. But when comparing it to its historical volatility, Tekla Healthcare Opportunities is 8.31 times less risky than Delaware High-yield. It trades about 0.05 of its potential returns per unit of risk. Delaware High Yield Opportunities is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 562.00 in Delaware High Yield Opportunities on September 2, 2024 and sell it today you would lose (224.00) from holding Delaware High Yield Opportunities or give up 39.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 81.65% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Delaware High Yield Opportunit
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Delaware High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tekla Healthcare and Delaware High-yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Delaware High-yield
The main advantage of trading using opposite Tekla Healthcare and Delaware High-yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Delaware High-yield 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 Delaware High-yield will offset losses from the drop in Delaware High-yield'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 |
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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