Correlation Between Harmony Biosciences and China Hongqiao
Can any of the company-specific risk be diversified away by investing in both Harmony Biosciences and China Hongqiao 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 Harmony Biosciences and China Hongqiao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harmony Biosciences Holdings and China Hongqiao Group, you can compare the effects of market volatilities on Harmony Biosciences and China Hongqiao 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 Harmony Biosciences with a short position of China Hongqiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harmony Biosciences and China Hongqiao.
Diversification Opportunities for Harmony Biosciences and China Hongqiao
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harmony and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harmony Biosciences Holdings and China Hongqiao Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Hongqiao Group and Harmony Biosciences 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 Harmony Biosciences Holdings are associated (or correlated) with China Hongqiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Hongqiao Group has no effect on the direction of Harmony Biosciences i.e., Harmony Biosciences and China Hongqiao go up and down completely randomly.
Pair Corralation between Harmony Biosciences and China Hongqiao
If you would invest 3,453 in Harmony Biosciences Holdings on November 9, 2024 and sell it today you would earn a total of 425.00 from holding Harmony Biosciences Holdings or generate 12.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harmony Biosciences Holdings vs. China Hongqiao Group
Performance |
| Timeline |
| Harmony Biosciences |
| China Hongqiao Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Harmony Biosciences and China Hongqiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harmony Biosciences and China Hongqiao
The main advantage of trading using opposite Harmony Biosciences and China Hongqiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harmony Biosciences position performs unexpectedly, China Hongqiao 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 China Hongqiao will offset losses from the drop in China Hongqiao's long position.| Harmony Biosciences vs. Keros Therapeutics | Harmony Biosciences vs. Janux Therapeutics | Harmony Biosciences vs. Fennec Pharmaceuticals | Harmony Biosciences vs. Edgewise Therapeutics |
| China Hongqiao vs. Constellium Nv | China Hongqiao vs. Century Aluminum | China Hongqiao vs. Alcoa Corp | China Hongqiao vs. China Hongqiao Group |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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