Correlation Between Tekla Healthcare and Aggressive Investors
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Aggressive Investors 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 Aggressive Investors 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 Aggressive Investors 1, you can compare the effects of market volatilities on Tekla Healthcare and Aggressive Investors 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 Aggressive Investors. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Aggressive Investors.
Diversification Opportunities for Tekla Healthcare and Aggressive Investors
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tekla and Aggressive is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Aggressive Investors 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aggressive Investors 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 Aggressive Investors. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aggressive Investors has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Aggressive Investors go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Aggressive Investors
Assuming the 90 days horizon Tekla Healthcare Investors is expected to under-perform the Aggressive Investors. But the mutual fund apears to be less risky and, when comparing its historical volatility, Tekla Healthcare Investors is 1.09 times less risky than Aggressive Investors. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Aggressive Investors 1 is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 9,799 in Aggressive Investors 1 on October 23, 2024 and sell it today you would earn a total of 310.00 from holding Aggressive Investors 1 or generate 3.16% 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. Aggressive Investors 1
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Aggressive Investors |
Tekla Healthcare and Aggressive Investors Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Aggressive Investors
The main advantage of trading using opposite Tekla Healthcare and Aggressive Investors positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Aggressive Investors 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 Aggressive Investors will offset losses from the drop in Aggressive Investors' long position.| Tekla Healthcare vs. Hartford Municipal Income | Tekla Healthcare vs. Ambrus Core Bond | Tekla Healthcare vs. T Rowe Price | Tekla Healthcare vs. Siit High Yield |
| Aggressive Investors vs. Issachar Fund Class | Aggressive Investors vs. T Rowe Price | Aggressive Investors vs. Shelton Funds | Aggressive Investors vs. Rbc Funds Trust |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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