Correlation Between Harvest Global and Financial
Can any of the company-specific risk be diversified away by investing in both Harvest Global and 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 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 Financial 15 Split, you can compare the effects of market volatilities on Harvest Global and 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 Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and Financial.
Diversification Opportunities for Harvest Global and Financial
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harvest and Financial is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and Financial 15 Split in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Financial 15 Split 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 Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Financial 15 Split has no effect on the direction of Harvest Global i.e., Harvest Global and Financial go up and down completely randomly.
Pair Corralation between Harvest Global and Financial
Assuming the 90 days trading horizon Harvest Global REIT is expected to generate 3.71 times more return on investment than Financial. However, Harvest Global is 3.71 times more volatile than Financial 15 Split. It trades about 0.08 of its potential returns per unit of risk. Financial 15 Split is currently generating about 0.25 per unit of risk. If you would invest 550.00 in Harvest Global REIT on September 3, 2024 and sell it today you would earn a total of 96.00 from holding Harvest Global REIT or generate 17.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harvest Global REIT vs. Financial 15 Split
Performance |
| Timeline |
| Harvest Global REIT |
| Financial 15 Split |
Harvest Global and Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harvest Global and Financial
The main advantage of trading using opposite Harvest Global and Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harvest Global position performs unexpectedly, 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 Financial will offset losses from the drop in 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 |
| Financial vs. North American Financial | Financial vs. Dividend 15 Split | Financial vs. Dividend Growth Split | Financial vs. Dividend 15 Split |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges |