Correlation Between Harmonic and IShares Fixed
Can any of the company-specific risk be diversified away by investing in both Harmonic and IShares Fixed 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 Harmonic and IShares Fixed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmonic and iShares Fixed Income, you can compare the effects of market volatilities on Harmonic and IShares Fixed 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 Harmonic with a short position of IShares Fixed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmonic and IShares Fixed.
Diversification Opportunities for Harmonic and IShares Fixed
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harmonic and IShares is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Harmonic and iShares Fixed Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Fixed Income and Harmonic 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 Harmonic are associated (or correlated) with IShares Fixed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Fixed Income has no effect on the direction of Harmonic i.e., Harmonic and IShares Fixed go up and down completely randomly.
Pair Corralation between Harmonic and IShares Fixed
Given the investment horizon of 90 days Harmonic is expected to generate 10.21 times more return on investment than IShares Fixed. However, Harmonic is 10.21 times more volatile than iShares Fixed Income. It trades about 0.36 of its potential returns per unit of risk. iShares Fixed Income is currently generating about 0.26 per unit of risk. If you would invest 1,112 in Harmonic on September 3, 2024 and sell it today you would earn a total of 170.00 from holding Harmonic or generate 15.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harmonic vs. iShares Fixed Income
Performance |
| Timeline |
| Harmonic |
| iShares Fixed Income |
Harmonic and IShares Fixed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmonic and IShares Fixed
The main advantage of trading using opposite Harmonic and IShares Fixed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmonic position performs unexpectedly, IShares Fixed 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 IShares Fixed will offset losses from the drop in IShares Fixed's long position.| Harmonic vs. NETGEAR | Harmonic vs. Juniper Networks | Harmonic vs. Digi International | Harmonic vs. Clearfield |
| IShares Fixed vs. iShares iBoxx High | IShares Fixed vs. iShares 1 3 Year | IShares Fixed vs. iShares TIPS Bond | IShares Fixed vs. iShares 7 10 Year |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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