Correlation Between Tekla Healthcare and Great-west Lifetime
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Great-west Lifetime 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 Great-west Lifetime 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 Great West Lifetime 2030, you can compare the effects of market volatilities on Tekla Healthcare and Great-west Lifetime 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 Great-west Lifetime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Great-west Lifetime.
Diversification Opportunities for Tekla Healthcare and Great-west Lifetime
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tekla and Great-west is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Great West Lifetime 2030 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West Lifetime 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 Great-west Lifetime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West Lifetime has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Great-west Lifetime go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Great-west Lifetime
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 1.84 times more return on investment than Great-west Lifetime. However, Tekla Healthcare is 1.84 times more volatile than Great West Lifetime 2030. It trades about 0.11 of its potential returns per unit of risk. Great West Lifetime 2030 is currently generating about 0.09 per unit of risk. If you would invest 1,601 in Tekla Healthcare Opportunities on September 4, 2024 and sell it today you would earn a total of 471.00 from holding Tekla Healthcare Opportunities or generate 29.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Great West Lifetime 2030
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Great West Lifetime |
Tekla Healthcare and Great-west Lifetime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Great-west Lifetime
The main advantage of trading using opposite Tekla Healthcare and Great-west Lifetime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Great-west Lifetime 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 Great-west Lifetime will offset losses from the drop in Great-west Lifetime'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 |
| Great-west Lifetime vs. Delaware Healthcare Fund | Great-west Lifetime vs. Tekla Healthcare Opportunities | Great-west Lifetime vs. Eventide Healthcare Life | Great-west Lifetime vs. Blackrock Health Sciences |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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