Correlation Between Tekla Healthcare and Pgim Securitized
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Pgim Securitized 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 Pgim Securitized 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 Pgim Securitized Credit, you can compare the effects of market volatilities on Tekla Healthcare and Pgim Securitized 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 Pgim Securitized. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Pgim Securitized.
Diversification Opportunities for Tekla Healthcare and Pgim Securitized
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tekla and Pgim is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Pgim Securitized Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim Securitized Credit 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 Pgim Securitized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim Securitized Credit has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Pgim Securitized go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Pgim Securitized
Assuming the 90 days horizon Tekla Healthcare Investors is expected to generate 10.83 times more return on investment than Pgim Securitized. However, Tekla Healthcare is 10.83 times more volatile than Pgim Securitized Credit. It trades about 0.09 of its potential returns per unit of risk. Pgim Securitized Credit is currently generating about 0.27 per unit of risk. If you would invest 1,669 in Tekla Healthcare Investors on May 29, 2025 and sell it today you would earn a total of 104.00 from holding Tekla Healthcare Investors or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekla Healthcare Investors vs. Pgim Securitized Credit
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Pgim Securitized Credit |
Tekla Healthcare and Pgim Securitized Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Pgim Securitized
The main advantage of trading using opposite Tekla Healthcare and Pgim Securitized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Pgim Securitized 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 Pgim Securitized will offset losses from the drop in Pgim Securitized's long position.| Tekla Healthcare vs. Vanguard Total Stock | Tekla Healthcare vs. Vanguard 500 Index | Tekla Healthcare vs. Vanguard Total Stock | Tekla Healthcare vs. Vanguard Total Stock |
| Pgim Securitized vs. Gmo E Plus | Pgim Securitized vs. Pioneer High Yield | Pgim Securitized vs. Rbc Funds Trust | Pgim Securitized vs. Old Westbury Fixed |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Commodity Directory Find actively traded commodities issued by global exchanges |