Correlation Between Tekla Healthcare and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs Trust, you can compare the effects of market volatilities on Tekla Healthcare and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Goldman Sachs.
Diversification Opportunities for Tekla Healthcare and Goldman Sachs
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tekla and Goldman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Goldman Sachs Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Trust 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Trust has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Goldman Sachs go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Goldman Sachs
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 0.92 times more return on investment than Goldman Sachs. However, Tekla Healthcare Opportunities is 1.09 times less risky than Goldman Sachs. It trades about 0.05 of its potential returns per unit of risk. Goldman Sachs Trust is currently generating about 0.02 per unit of risk. If you would invest 1,688 in Tekla Healthcare Opportunities on September 3, 2024 and sell it today you would earn a total of 386.00 from holding Tekla Healthcare Opportunities or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.94% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Goldman Sachs Trust
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Goldman Sachs Trust |
Tekla Healthcare and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Goldman Sachs
The main advantage of trading using opposite Tekla Healthcare and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' 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 |
| Goldman Sachs vs. Virtus Convertible | Goldman Sachs vs. Allianzgi Convertible Income | Goldman Sachs vs. Absolute Convertible Arbitrage | Goldman Sachs vs. Rationalpier 88 Convertible |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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