Correlation Between Tekla Healthcare and Brandes International
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Brandes International 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 Brandes International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekla Healthcare Investors and Brandes International Equity, you can compare the effects of market volatilities on Tekla Healthcare and Brandes International 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 Brandes International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Brandes International.
Diversification Opportunities for Tekla Healthcare and Brandes International
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tekla and Brandes is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Brandes International Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brandes International 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 Investors are associated (or correlated) with Brandes International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brandes International has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Brandes International go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Brandes International
Assuming the 90 days horizon Tekla Healthcare Investors is expected to under-perform the Brandes International. In addition to that, Tekla Healthcare is 1.13 times more volatile than Brandes International Equity. It trades about -0.02 of its total potential returns per unit of risk. Brandes International Equity is currently generating about 0.1 per unit of volatility. If you would invest 1,685 in Brandes International Equity on October 24, 2024 and sell it today you would earn a total of 23.00 from holding Brandes International Equity or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Investors vs. Brandes International Equity
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Brandes International |
Tekla Healthcare and Brandes International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Brandes International
The main advantage of trading using opposite Tekla Healthcare and Brandes International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Brandes International 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 Brandes International will offset losses from the drop in Brandes International's long position.| Tekla Healthcare vs. Fidelity Sai Convertible | Tekla Healthcare vs. Lord Abbett Convertible | Tekla Healthcare vs. Calamos Dynamic Convertible | Tekla Healthcare vs. Virtus Convertible |
| Brandes International vs. Rbc Global Equity | Brandes International vs. Alliancebernstein Global Highome | Brandes International vs. Rbb Fund | Brandes International vs. Legg Mason Global |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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