Correlation Between Tekla Healthcare and Hartford Healthcare
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Hartford Healthcare 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 Hartford Healthcare 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 Hartford Healthcare Hls, you can compare the effects of market volatilities on Tekla Healthcare and Hartford Healthcare 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 Hartford Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Hartford Healthcare.
Diversification Opportunities for Tekla Healthcare and Hartford Healthcare
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tekla and Hartford is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Hartford Healthcare Hls in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartford Healthcare Hls 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 Hartford Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartford Healthcare Hls has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Hartford Healthcare go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Hartford Healthcare
Assuming the 90 days horizon Tekla Healthcare Investors is expected to generate 1.23 times more return on investment than Hartford Healthcare. However, Tekla Healthcare is 1.23 times more volatile than Hartford Healthcare Hls. It trades about -0.13 of its potential returns per unit of risk. Hartford Healthcare Hls is currently generating about -0.23 per unit of risk. If you would invest 1,920 in Tekla Healthcare Investors on October 10, 2024 and sell it today you would lose (52.00) from holding Tekla Healthcare Investors or give up 2.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Investors vs. Hartford Healthcare Hls
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Hartford Healthcare Hls |
Tekla Healthcare and Hartford Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Hartford Healthcare
The main advantage of trading using opposite Tekla Healthcare and Hartford Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Hartford Healthcare 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 Hartford Healthcare will offset losses from the drop in Hartford Healthcare's long position.| Tekla Healthcare vs. T Rowe Price | Tekla Healthcare vs. Tfa Alphagen Growth | Tekla Healthcare vs. Eip Growth And | Tekla Healthcare vs. Small Pany Growth |
| Hartford Healthcare vs. Versatile Bond Portfolio | Hartford Healthcare vs. Arrow Managed Futures | Hartford Healthcare vs. Qs Large Cap | Hartford Healthcare vs. Issachar Fund Class |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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