Correlation Between Tekla Healthcare and Mainstay Conservative
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Mainstay Conservative 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 Conservative 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 Conservative Etf, you can compare the effects of market volatilities on Tekla Healthcare and Mainstay Conservative 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 Conservative. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Mainstay Conservative.
Diversification Opportunities for Tekla Healthcare and Mainstay Conservative
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tekla and Mainstay is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Mainstay Conservative Etf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mainstay Conservative Etf 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 Conservative. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mainstay Conservative Etf has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Mainstay Conservative go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Mainstay Conservative
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to under-perform the Mainstay Conservative. In addition to that, Tekla Healthcare is 2.83 times more volatile than Mainstay Conservative Etf. It trades about -0.05 of its total potential returns per unit of risk. Mainstay Conservative Etf is currently generating about 0.11 per unit of volatility. If you would invest 1,087 in Mainstay Conservative Etf on August 28, 2024 and sell it today you would earn a total of 28.00 from holding Mainstay Conservative Etf or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Mainstay Conservative Etf
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Mainstay Conservative Etf |
Tekla Healthcare and Mainstay Conservative Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Mainstay Conservative
The main advantage of trading using opposite Tekla Healthcare and Mainstay Conservative positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Mainstay Conservative 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 Conservative will offset losses from the drop in Mainstay Conservative'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 Conservative vs. Mainstay High Yield | Mainstay Conservative vs. Mainstay Tax Free | Mainstay Conservative vs. Mainstay Income Builder | Mainstay Conservative vs. Mainstay Large Cap |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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