Correlation Between Atlanticus Holdings and Harrow Health
Can any of the company-specific risk be diversified away by investing in both Atlanticus Holdings and Harrow Health 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 Atlanticus Holdings and Harrow Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Atlanticus Holdings Corp and Harrow Health 8625, you can compare the effects of market volatilities on Atlanticus Holdings and Harrow Health 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 Atlanticus Holdings with a short position of Harrow Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Atlanticus Holdings and Harrow Health.
Diversification Opportunities for Atlanticus Holdings and Harrow Health
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Atlanticus and Harrow is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Atlanticus Holdings Corp and Harrow Health 8625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harrow Health 8625 and Atlanticus Holdings 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 Atlanticus Holdings Corp are associated (or correlated) with Harrow Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harrow Health 8625 has no effect on the direction of Atlanticus Holdings i.e., Atlanticus Holdings and Harrow Health go up and down completely randomly.
Pair Corralation between Atlanticus Holdings and Harrow Health
Assuming the 90 days horizon Atlanticus Holdings Corp is expected to generate 2.31 times more return on investment than Harrow Health. However, Atlanticus Holdings is 2.31 times more volatile than Harrow Health 8625. It trades about 0.16 of its potential returns per unit of risk. Harrow Health 8625 is currently generating about 0.14 per unit of risk. If you would invest 2,340 in Atlanticus Holdings Corp on November 29, 2024 and sell it today you would earn a total of 39.00 from holding Atlanticus Holdings Corp or generate 1.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Atlanticus Holdings Corp vs. Harrow Health 8625
Performance |
| Timeline |
| Atlanticus Holdings Corp |
| Harrow Health 8625 |
Atlanticus Holdings and Harrow Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Atlanticus Holdings and Harrow Health
The main advantage of trading using opposite Atlanticus Holdings and Harrow Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Atlanticus Holdings position performs unexpectedly, Harrow Health 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 Harrow Health will offset losses from the drop in Harrow Health's long position.| Atlanticus Holdings vs. Babcock Wilcox Enterprises | Atlanticus Holdings vs. XOMA Corporation | Atlanticus Holdings vs. Brighthouse Financial | Atlanticus Holdings vs. Presidio Property Trust |
| Harrow Health vs. Babcock Wilcox Enterprises, | Harrow Health vs. Babcock Wilcox Enterprises | Harrow Health vs. B Riley Financial | Harrow Health vs. SiriusPoint |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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