Correlation Between Harte Hanks and Oriental Culture
Can any of the company-specific risk be diversified away by investing in both Harte Hanks and Oriental Culture 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 Harte Hanks and Oriental Culture into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harte Hanks and Oriental Culture Holding, you can compare the effects of market volatilities on Harte Hanks and Oriental Culture 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 Harte Hanks with a short position of Oriental Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harte Hanks and Oriental Culture.
Diversification Opportunities for Harte Hanks and Oriental Culture
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harte and Oriental is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Harte Hanks and Oriental Culture Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Culture Holding and Harte Hanks 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 Harte Hanks are associated (or correlated) with Oriental Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Culture Holding has no effect on the direction of Harte Hanks i.e., Harte Hanks and Oriental Culture go up and down completely randomly.
Pair Corralation between Harte Hanks and Oriental Culture
Considering the 90-day investment horizon Harte Hanks is expected to under-perform the Oriental Culture. But the stock apears to be less risky and, when comparing its historical volatility, Harte Hanks is 3.34 times less risky than Oriental Culture. The stock trades about -0.05 of its potential returns per unit of risk. The Oriental Culture Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 107.00 in Oriental Culture Holding on August 28, 2024 and sell it today you would earn a total of 15.00 from holding Oriental Culture Holding or generate 14.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harte Hanks vs. Oriental Culture Holding
Performance |
| Timeline |
| Harte Hanks |
| Oriental Culture Holding |
Harte Hanks and Oriental Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harte Hanks and Oriental Culture
The main advantage of trading using opposite Harte Hanks and Oriental Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harte Hanks position performs unexpectedly, Oriental Culture 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 Oriental Culture will offset losses from the drop in Oriental Culture's long position.| Harte Hanks vs. FTAI Infrastructure | Harte Hanks vs. Steel Partners Holdings | Harte Hanks vs. Mammoth Energy Services | Harte Hanks vs. Seaboard |
| Oriental Culture vs. MDJM | Oriental Culture vs. Southcorp Capital | Oriental Culture vs. Frp Holdings Ord | Oriental Culture vs. Ucommune International |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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