Correlation Between Tekla Healthcare and Barings Participation
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Barings Participation 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 Barings Participation 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 Barings Participation Investors, you can compare the effects of market volatilities on Tekla Healthcare and Barings Participation 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 Barings Participation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Barings Participation.
Diversification Opportunities for Tekla Healthcare and Barings Participation
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tekla and Barings is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Barings Participation Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barings Participation 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 Barings Participation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barings Participation has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Barings Participation go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Barings Participation
Considering the 90-day investment horizon Tekla Healthcare is expected to generate 1.47 times less return on investment than Barings Participation. In addition to that, Tekla Healthcare is 1.01 times more volatile than Barings Participation Investors. It trades about 0.07 of its total potential returns per unit of risk. Barings Participation Investors is currently generating about 0.11 per unit of volatility. If you would invest 1,464 in Barings Participation Investors on September 1, 2024 and sell it today you would earn a total of 206.00 from holding Barings Participation Investors or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Barings Participation Investor
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Barings Participation |
Tekla Healthcare and Barings Participation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Barings Participation
The main advantage of trading using opposite Tekla Healthcare and Barings Participation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Barings Participation 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 Barings Participation will offset losses from the drop in Barings Participation'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 |
| Barings Participation vs. Allianzgi Equity Convertible | Barings Participation vs. Cohen Steers Total | Barings Participation vs. Blackrock Floating Rate | Barings Participation vs. MFS Investment Grade |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |