Correlation Between Prudential Jennison and Tekla Healthcare
Can any of the company-specific risk be diversified away by investing in both Prudential Jennison and Tekla 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 Prudential Jennison and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prudential Jennison Equity and Tekla Healthcare Investors, you can compare the effects of market volatilities on Prudential Jennison and Tekla 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 Prudential Jennison with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prudential Jennison and Tekla Healthcare.
Diversification Opportunities for Prudential Jennison and Tekla Healthcare
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Prudential and Tekla is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Prudential Jennison Equity and Tekla Healthcare Investors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekla Healthcare Inv and Prudential Jennison 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 Prudential Jennison Equity are associated (or correlated) with Tekla Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekla Healthcare Inv has no effect on the direction of Prudential Jennison i.e., Prudential Jennison and Tekla Healthcare go up and down completely randomly.
Pair Corralation between Prudential Jennison and Tekla Healthcare
Assuming the 90 days horizon Prudential Jennison Equity is expected to generate 0.68 times more return on investment than Tekla Healthcare. However, Prudential Jennison Equity is 1.47 times less risky than Tekla Healthcare. It trades about 0.08 of its potential returns per unit of risk. Tekla Healthcare Investors is currently generating about -0.01 per unit of risk. If you would invest 961.00 in Prudential Jennison Equity on June 8, 2025 and sell it today you would earn a total of 315.00 from holding Prudential Jennison Equity or generate 32.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prudential Jennison Equity vs. Tekla Healthcare Investors
Performance |
| Timeline |
| Prudential Jennison |
| Tekla Healthcare Inv |
Prudential Jennison and Tekla Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prudential Jennison and Tekla Healthcare
The main advantage of trading using opposite Prudential Jennison and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prudential Jennison position performs unexpectedly, Tekla 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 Tekla Healthcare will offset losses from the drop in Tekla Healthcare's long position.| Prudential Jennison vs. Ridgeworth Seix Government | Prudential Jennison vs. Payden Government Fund | Prudential Jennison vs. Blackrock Government Bond | Prudential Jennison vs. Franklin Adjustable Government |
| Tekla Healthcare vs. Tekla Healthcare Investors | Tekla Healthcare vs. Tekla Life Sciences | Tekla Healthcare vs. Flaherty and Crumrine | Tekla Healthcare vs. Cohen And Steers |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |