Correlation Between Tekla Healthcare and Tiaa-cref Managed
Can any of the company-specific risk be diversified away by investing in both Tekla Healthcare and Tiaa-cref Managed 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 Tiaa-cref Managed 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 Tiaa Cref Managed Allocation, you can compare the effects of market volatilities on Tekla Healthcare and Tiaa-cref Managed 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 Tiaa-cref Managed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekla Healthcare and Tiaa-cref Managed.
Diversification Opportunities for Tekla Healthcare and Tiaa-cref Managed
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tekla and Tiaa-cref is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tekla Healthcare Investors and Tiaa Cref Managed Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Managed 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 Tiaa-cref Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tiaa Cref Managed has no effect on the direction of Tekla Healthcare i.e., Tekla Healthcare and Tiaa-cref Managed go up and down completely randomly.
Pair Corralation between Tekla Healthcare and Tiaa-cref Managed
Assuming the 90 days horizon Tekla Healthcare is expected to generate 1.07 times less return on investment than Tiaa-cref Managed. In addition to that, Tekla Healthcare is 2.77 times more volatile than Tiaa Cref Managed Allocation. It trades about 0.08 of its total potential returns per unit of risk. Tiaa Cref Managed Allocation is currently generating about 0.22 per unit of volatility. If you would invest 1,272 in Tiaa Cref Managed Allocation on June 3, 2025 and sell it today you would earn a total of 72.00 from holding Tiaa Cref Managed Allocation or generate 5.66% 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. Tiaa Cref Managed Allocation
Performance |
| Timeline |
| Tekla Healthcare Inv |
| Tiaa Cref Managed |
Tekla Healthcare and Tiaa-cref Managed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekla Healthcare and Tiaa-cref Managed
The main advantage of trading using opposite Tekla Healthcare and Tiaa-cref Managed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekla Healthcare position performs unexpectedly, Tiaa-cref Managed 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 Tiaa-cref Managed will offset losses from the drop in Tiaa-cref Managed's long position.| Tekla Healthcare vs. Touchstone Small Cap | Tekla Healthcare vs. Scout Small Cap | Tekla Healthcare vs. Aqr Small Cap | Tekla Healthcare vs. Qs Small Capitalization |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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