Correlation Between Harrow Health and Hancock Whitney
Can any of the company-specific risk be diversified away by investing in both Harrow Health and Hancock Whitney 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 Harrow Health and Hancock Whitney into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harrow Health 8625 and Hancock Whitney, you can compare the effects of market volatilities on Harrow Health and Hancock Whitney 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 Harrow Health with a short position of Hancock Whitney. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and Hancock Whitney.
Diversification Opportunities for Harrow Health and Hancock Whitney
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harrow and Hancock is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 and Hancock Whitney in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hancock Whitney and Harrow Health 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 Harrow Health 8625 are associated (or correlated) with Hancock Whitney. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hancock Whitney has no effect on the direction of Harrow Health i.e., Harrow Health and Hancock Whitney go up and down completely randomly.
Pair Corralation between Harrow Health and Hancock Whitney
Assuming the 90 days horizon Harrow Health 8625 is expected to generate 0.57 times more return on investment than Hancock Whitney. However, Harrow Health 8625 is 1.74 times less risky than Hancock Whitney. It trades about 0.08 of its potential returns per unit of risk. Hancock Whitney is currently generating about 0.03 per unit of risk. If you would invest 1,946 in Harrow Health 8625 on September 5, 2024 and sell it today you would earn a total of 593.00 from holding Harrow Health 8625 or generate 30.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health 8625 vs. Hancock Whitney
Performance |
| Timeline |
| Harrow Health 8625 |
| Hancock Whitney |
Harrow Health and Hancock Whitney Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and Hancock Whitney
The main advantage of trading using opposite Harrow Health and Hancock Whitney positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health position performs unexpectedly, Hancock Whitney 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 Hancock Whitney will offset losses from the drop in Hancock Whitney's long position.| Harrow Health vs. Babcock Wilcox Enterprises, | Harrow Health vs. Babcock Wilcox Enterprises | Harrow Health vs. B Riley Financial | Harrow Health vs. SiriusPoint |
| Hancock Whitney vs. Office Properties Income | Hancock Whitney vs. Brighthouse Financial | Hancock Whitney vs. American Financial Group | Hancock Whitney vs. American Financial 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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