Correlation Between Tekla Healthcare and Smallcap Growth
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Smallcap Growth 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 Smallcap Growth 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 Smallcap Growth Fund, you can compare the effects of market volatilities on Tekla Healthcare and Smallcap Growth 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 Smallcap Growth. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Smallcap Growth.
Diversification Opportunities for Tekla Healthcare and Smallcap Growth
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tekla and Smallcap is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Smallcap Growth Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smallcap Growth 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 Smallcap Growth. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smallcap Growth has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Smallcap Growth go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Smallcap Growth
If you would invest 1,150 in Smallcap Growth Fund on October 10, 2024 and sell it today you would earn a total of 0.00 from holding Smallcap Growth Fund or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Tekla Healthcare Investors vs. Smallcap Growth Fund
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Smallcap Growth |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Good
Tekla Healthcare and Smallcap Growth Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Smallcap Growth
The main advantage of trading using opposite Tekla Healthcare and Smallcap Growth positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Smallcap Growth 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 Smallcap Growth will offset losses from the drop in Smallcap Growth'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 |
| Smallcap Growth vs. Tekla Healthcare Investors | Smallcap Growth vs. Live Oak Health | Smallcap Growth vs. Hartford Healthcare Hls | Smallcap Growth vs. Fidelity Advisor Health |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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