Correlation Between Tekla Healthcare and Shelton Funds
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Shelton Funds 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 Shelton Funds 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 Shelton Funds , you can compare the effects of market volatilities on Tekla Healthcare and Shelton Funds 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 Shelton Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Shelton Funds.
Diversification Opportunities for Tekla Healthcare and Shelton Funds
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tekla and Shelton is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Opportunities and Shelton Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shelton Funds 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 Shelton Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shelton Funds has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Shelton Funds go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Shelton Funds
Considering the 90-day investment horizon Tekla Healthcare Opportunities is expected to generate 0.76 times more return on investment than Shelton Funds. However, Tekla Healthcare Opportunities is 1.31 times less risky than Shelton Funds. It trades about 0.04 of its potential returns per unit of risk. Shelton Funds is currently generating about 0.01 per unit of risk. If you would invest 1,909 in Tekla Healthcare Opportunities on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Tekla Healthcare Opportunities or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Opportunities vs. Shelton Funds
Performance |
| Timeline |
| Tekla Healthcare Opp |
| Shelton Funds |
Tekla Healthcare and Shelton Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Shelton Funds
The main advantage of trading using opposite Tekla Healthcare and Shelton Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Shelton Funds 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 Shelton Funds will offset losses from the drop in Shelton Funds' 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 |
| Shelton Funds vs. American Funds The | Shelton Funds vs. American Funds The | Shelton Funds vs. Growth Fund Of | Shelton Funds vs. Growth Fund Of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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