Correlation Between Harvest Global and Accord Financial
Can any of the company-specific risk be diversified away by investing in both Harvest Global and Accord Financial 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 Harvest Global and Accord Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harvest Global REIT and Accord Financial Corp, you can compare the effects of market volatilities on Harvest Global and Accord Financial 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 Harvest Global with a short position of Accord Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and Accord Financial.
Diversification Opportunities for Harvest Global and Accord Financial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harvest and Accord is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and Accord Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accord Financial Corp and Harvest Global 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 Harvest Global REIT are associated (or correlated) with Accord Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accord Financial Corp has no effect on the direction of Harvest Global i.e., Harvest Global and Accord Financial go up and down completely randomly.
Pair Corralation between Harvest Global and Accord Financial
Assuming the 90 days trading horizon Harvest Global REIT is expected to generate 0.44 times more return on investment than Accord Financial. However, Harvest Global REIT is 2.26 times less risky than Accord Financial. It trades about 0.06 of its potential returns per unit of risk. Accord Financial Corp is currently generating about -0.02 per unit of risk. If you would invest 553.00 in Harvest Global REIT on September 4, 2024 and sell it today you would earn a total of 76.00 from holding Harvest Global REIT or generate 13.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Global REIT vs. Accord Financial Corp
Performance |
| Timeline |
| Harvest Global REIT |
| Accord Financial Corp |
Harvest Global and Accord Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Global and Accord Financial
The main advantage of trading using opposite Harvest Global and Accord Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global position performs unexpectedly, Accord Financial 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 Accord Financial will offset losses from the drop in Accord Financial's long position.| Harvest Global vs. Harvest Equal Weight | Harvest Global vs. Harvest Brand Leaders | Harvest Global vs. Energy Leaders Plus | Harvest Global vs. Harvest Tech Achievers |
| Accord Financial vs. Algoma Central | Accord Financial vs. Chesswood Group Limited | Accord Financial vs. Clairvest Group | Accord Financial vs. Clarke Inc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |