Correlation Between Fortress Biotech and Harbor Custom
Can any of the company-specific risk be diversified away by investing in both Fortress Biotech and Harbor Custom 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 Fortress Biotech and Harbor Custom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fortress Biotech Pref and Harbor Custom Development, you can compare the effects of market volatilities on Fortress Biotech and Harbor Custom 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 Fortress Biotech with a short position of Harbor Custom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and Harbor Custom.
Diversification Opportunities for Fortress Biotech and Harbor Custom
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fortress and Harbor is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref and Harbor Custom Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Custom Development and Fortress Biotech 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 Fortress Biotech Pref are associated (or correlated) with Harbor Custom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Custom Development has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and Harbor Custom go up and down completely randomly.
Pair Corralation between Fortress Biotech and Harbor Custom
Assuming the 90 days horizon Fortress Biotech Pref is expected to under-perform the Harbor Custom. But the preferred stock apears to be less risky and, when comparing its historical volatility, Fortress Biotech Pref is 2.24 times less risky than Harbor Custom. The preferred stock trades about -0.02 of its potential returns per unit of risk. The Harbor Custom Development is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Harbor Custom Development on August 28, 2024 and sell it today you would earn a total of 194.00 from holding Harbor Custom Development or generate 60.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 31.72% |
| Values | Daily Returns |
Fortress Biotech Pref vs. Harbor Custom Development
Performance |
| Timeline |
| Fortress Biotech Pref |
| Harbor Custom Development |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Fortress Biotech and Harbor Custom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fortress Biotech and Harbor Custom
The main advantage of trading using opposite Fortress Biotech and Harbor Custom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fortress Biotech position performs unexpectedly, Harbor Custom 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 Custom will offset losses from the drop in Harbor Custom's long position.| Fortress Biotech vs. Checkpoint Therapeutics | Fortress Biotech vs. Mustang Bio | Fortress Biotech vs. Reviva Pharmaceuticals Holdings | Fortress Biotech vs. Kodiak Sciences |
| Harbor Custom vs. Presidio Property Trust | Harbor Custom vs. FAT Brands | Harbor Custom vs. Fortress Biotech Pref |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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