Correlation Between American High and Harbor High
Can any of the company-specific risk be diversified away by investing in both American High and Harbor High 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 American High and Harbor High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American High Income and Harbor High Yield Bond, you can compare the effects of market volatilities on American High and Harbor High 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 American High with a short position of Harbor High. Check out your portfolio center. Please also check ongoing floating volatility patterns of American High and Harbor High.
Diversification Opportunities for American High and Harbor High
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between American and Harbor is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding American High Income and Harbor High Yield Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor High Yield and American High 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 American High Income are associated (or correlated) with Harbor High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor High Yield has no effect on the direction of American High i.e., American High and Harbor High go up and down completely randomly.
Pair Corralation between American High and Harbor High
If you would invest 980.00 in American High Income on September 3, 2024 and sell it today you would earn a total of 5.00 from holding American High Income or generate 0.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
American High Income vs. Harbor High Yield Bond
Performance |
| Timeline |
| American High Income |
| Harbor High Yield |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
American High and Harbor High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American High and Harbor High
The main advantage of trading using opposite American High and Harbor High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American High position performs unexpectedly, Harbor High 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 Harbor High will offset losses from the drop in Harbor High's long position.| American High vs. Bond Fund Of | American High vs. Capital World Bond | American High vs. Intermediate Bond Fund | American High vs. Europacific Growth Fund |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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