Correlation Between Eaton Vance and Tekla Healthcare

Can any of the company-specific risk be diversified away by investing in both Eaton Vance 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 Eaton Vance and Tekla Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eaton Vance New and Tekla Healthcare Investors, you can compare the effects of market volatilities on Eaton Vance 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 Eaton Vance with a short position of Tekla Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eaton Vance and Tekla Healthcare.

Diversification Opportunities for Eaton Vance and Tekla Healthcare

0.0

Correlation Coefficient

Eaton Vance  Tekla Healthcare

Pay attention - limited upside

The 3 months correlation between Eaton and Tekla is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eaton Vance New 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 Eaton Vance 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 Eaton Vance New 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 Eaton Vance i.e., Eaton Vance and Tekla Healthcare go up and down completely randomly.

Pair Corralation between Eaton Vance and Tekla Healthcare

If you would invest  1,506  in Tekla Healthcare Investors on October 7, 2024 and sell it today you would earn a total of  149.00  from holding Tekla Healthcare Investors or generate 9.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Eaton Vance New  vs.  Tekla Healthcare Investors

Eaton Vance New

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eaton Vance New has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Eaton Vance is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Tekla Healthcare Inv

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Tekla Healthcare Investors has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Tekla Healthcare is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Eaton Vance and Tekla Healthcare

The main advantage of trading using opposite Eaton Vance and Tekla Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eaton Vance 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.

The idea behind Eaton Vance New and Tekla Healthcare Investors pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.