Correlation Between Eventide Healthcare and Tiaa Cref

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

By analyzing existing cross correlation between Eventide Healthcare Life and Tiaa Cref Emerging Markets, you can compare the effects of market volatilities on Eventide Healthcare and Tiaa Cref 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 Eventide Healthcare with a short position of Tiaa Cref. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Tiaa Cref.

Diversification Opportunities for Eventide Healthcare and Tiaa Cref

0.86

Correlation Coefficient

Eventide Healthcare  Tiaa Cref

Very poor diversification

The 3 months correlation between Eventide and Tiaa is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Tiaa Cref Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tiaa Cref Emerging and Eventide 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 Eventide Healthcare Life are associated (or correlated) with Tiaa Cref. 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 Emerging has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Tiaa Cref go up and down completely randomly.

Pair Corralation between Eventide Healthcare and Tiaa Cref

Assuming the 90 days horizon Eventide Healthcare Life is expected to generate 2.09 times more return on investment than Tiaa Cref. However, Eventide Healthcare is 2.09 times more volatile than Tiaa Cref Emerging Markets. It trades about 0.12 of its potential returns per unit of risk. Tiaa Cref Emerging Markets is currently generating about 0.18 per unit of risk. If you would invest  3,113  in Eventide Healthcare Life on May 4, 2025 and sell it today you would earn a total of  340.00  from holding Eventide Healthcare Life or generate 10.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Eventide Healthcare Life  vs.  Tiaa Cref Emerging Markets

Eventide Healthcare Life

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eventide Healthcare Life are ranked lower than 9 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Eventide Healthcare may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Tiaa Cref Emerging

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Tiaa Cref Emerging Markets are ranked lower than 14 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak essential indicators, Tiaa Cref may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Eventide Healthcare and Tiaa Cref

The main advantage of trading using opposite Eventide Healthcare and Tiaa Cref positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Tiaa Cref 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 will offset losses from the drop in Tiaa Cref's long position.

The idea behind Eventide Healthcare Life and Tiaa Cref Emerging Markets 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.

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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.