Correlation Between Tekla Healthcare and Mainstay Mackay
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Mainstay Mackay 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 Mainstay Mackay 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 Mainstay Mackay Infrastructure, you can compare the effects of market volatilities on Tekla Healthcare and Mainstay Mackay 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 Mainstay Mackay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Mainstay Mackay.
Diversification Opportunities for Tekla Healthcare and Mainstay Mackay
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tekla and Mainstay is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Mainstay Mackay Infrastructure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Mackay Infr 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 Mainstay Mackay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Mackay Infr has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Mainstay Mackay go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Mainstay Mackay
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 3.18 times more return on investment than Mainstay Mackay. However, Tekla Healthcare is 3.18 times more volatile than Mainstay Mackay Infrastructure. It trades about 0.06 of its potential returns per unit of risk. Mainstay Mackay Infrastructure is currently generating about 0.07 per unit of risk. If you would invest 1,881 in Tekla Healthcare Opportunities on November 28, 2024 and sell it today you would earn a total of 198.00 from holding Tekla Healthcare Opportunities or generate 10.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Mainstay Mackay Infrastructure
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Mainstay Mackay Infr |
Tekla Healthcare and Mainstay Mackay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Mainstay Mackay
The main advantage of trading using opposite Tekla Healthcare and Mainstay Mackay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Mainstay Mackay 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 Mainstay Mackay will offset losses from the drop in Mainstay Mackay'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 |
| Mainstay Mackay vs. Oppenheimer Gold Special | Mainstay Mackay vs. First Eagle Gold | Mainstay Mackay vs. Europac Gold Fund | Mainstay Mackay vs. Investment Managers Series |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |