Correlation Between Applied Industrial and Harte Hanks
Can any of the company-specific risk be diversified away by investing in both Applied Industrial and Harte Hanks 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 Applied Industrial and Harte Hanks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Industrial Technologies and Harte Hanks, you can compare the effects of market volatilities on Applied Industrial and Harte Hanks 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 Applied Industrial with a short position of Harte Hanks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Industrial and Harte Hanks.
Diversification Opportunities for Applied Industrial and Harte Hanks
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Applied and Harte is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Applied Industrial Technologie and Harte Hanks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harte Hanks and Applied Industrial 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 Applied Industrial Technologies are associated (or correlated) with Harte Hanks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harte Hanks has no effect on the direction of Applied Industrial i.e., Applied Industrial and Harte Hanks go up and down completely randomly.
Pair Corralation between Applied Industrial and Harte Hanks
Considering the 90-day investment horizon Applied Industrial Technologies is expected to generate 0.65 times more return on investment than Harte Hanks. However, Applied Industrial Technologies is 1.55 times less risky than Harte Hanks. It trades about 0.08 of its potential returns per unit of risk. Harte Hanks is currently generating about -0.04 per unit of risk. If you would invest 14,122 in Applied Industrial Technologies on November 2, 2024 and sell it today you would earn a total of 11,881 from holding Applied Industrial Technologies or generate 84.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Applied Industrial Technologie vs. Harte Hanks
Performance |
| Timeline |
| Applied Industrial |
| Harte Hanks |
Applied Industrial and Harte Hanks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Applied Industrial and Harte Hanks
The main advantage of trading using opposite Applied Industrial and Harte Hanks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Industrial position performs unexpectedly, Harte Hanks 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 Harte Hanks will offset losses from the drop in Harte Hanks' long position.| Applied Industrial vs. Core Main | Applied Industrial vs. WW Grainger | Applied Industrial vs. DXP Enterprises | Applied Industrial vs. SiteOne Landscape Supply |
| Harte Hanks vs. FTAI Infrastructure | Harte Hanks vs. Steel Partners Holdings | Harte Hanks vs. Mammoth Energy Services | Harte Hanks vs. Seaboard |
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 CEOs Directory module to screen CEOs from public companies around the world.
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