Correlation Between EA Series and Harbor Health
Can any of the company-specific risk be diversified away by investing in both EA Series and Harbor 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 EA Series and Harbor Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and Harbor Health Care, you can compare the effects of market volatilities on EA Series and Harbor 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 EA Series with a short position of Harbor Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Harbor Health.
Diversification Opportunities for EA Series and Harbor Health
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between DRLL and Harbor is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Harbor Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Health Care and EA Series 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 EA Series Trust are associated (or correlated) with Harbor Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Health Care has no effect on the direction of EA Series i.e., EA Series and Harbor Health go up and down completely randomly.
Pair Corralation between EA Series and Harbor Health
Given the investment horizon of 90 days EA Series is expected to generate 2.31 times less return on investment than Harbor Health. In addition to that, EA Series is 1.27 times more volatile than Harbor Health Care. It trades about 0.03 of its total potential returns per unit of risk. Harbor Health Care is currently generating about 0.07 per unit of volatility. If you would invest 1,947 in Harbor Health Care on November 1, 2024 and sell it today you would earn a total of 718.00 from holding Harbor Health Care or generate 36.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EA Series Trust vs. Harbor Health Care
Performance |
| Timeline |
| EA Series Trust |
| Harbor Health Care |
EA Series and Harbor Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and Harbor Health
The main advantage of trading using opposite EA Series and Harbor Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, Harbor 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 Harbor Health will offset losses from the drop in Harbor Health's long position.| EA Series vs. EA Series Trust | EA Series vs. EA Series Trust | EA Series vs. Rumble Inc | EA Series vs. EA Series Trust |
| Harbor Health vs. Horizon Kinetics Medical | Harbor Health vs. Ginkgo Bioworks Holdings | Harbor Health vs. Myriad Genetics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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