Correlation Between Harrow Health and New York
Can any of the company-specific risk be diversified away by investing in both Harrow Health and New York 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 New York 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 New York Mortgage, you can compare the effects of market volatilities on Harrow Health and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and New York.
Diversification Opportunities for Harrow Health and New York
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harrow and New is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 and New York Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Mortgage 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Mortgage has no effect on the direction of Harrow Health i.e., Harrow Health and New York go up and down completely randomly.
Pair Corralation between Harrow Health and New York
Assuming the 90 days horizon Harrow Health is expected to generate 1.59 times less return on investment than New York. But when comparing it to its historical volatility, Harrow Health 8625 is 1.46 times less risky than New York. It trades about 0.07 of its potential returns per unit of risk. New York Mortgage is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,729 in New York Mortgage on August 28, 2024 and sell it today you would earn a total of 764.00 from holding New York Mortgage or generate 44.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health 8625 vs. New York Mortgage
Performance |
| Timeline |
| Harrow Health 8625 |
| New York Mortgage |
Harrow Health and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and New York
The main advantage of trading using opposite Harrow Health and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health position performs unexpectedly, New York 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 New York will offset losses from the drop in New York'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 |
| New York vs. New York Mortgage | New York vs. AGNC Investment Corp | New York vs. Chimera Investment | New York vs. AGNC Investment Corp |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |