Correlation Between Harrow Health and B Riley
Can any of the company-specific risk be diversified away by investing in both Harrow Health and B Riley 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 B Riley 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 B Riley Financial, you can compare the effects of market volatilities on Harrow Health and B Riley 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 B Riley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and B Riley.
Diversification Opportunities for Harrow Health and B Riley
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Harrow and RILYT is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 and B Riley Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on B Riley Financial 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 B Riley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of B Riley Financial has no effect on the direction of Harrow Health i.e., Harrow Health and B Riley go up and down completely randomly.
Pair Corralation between Harrow Health and B Riley
Assuming the 90 days horizon Harrow Health is expected to generate 3.62 times less return on investment than B Riley. But when comparing it to its historical volatility, Harrow Health 8625 is 11.85 times less risky than B Riley. It trades about 0.1 of its potential returns per unit of risk. B Riley Financial is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 977.00 in B Riley Financial on October 26, 2024 and sell it today you would earn a total of 23.00 from holding B Riley Financial or generate 2.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health 8625 vs. B Riley Financial
Performance |
| Timeline |
| Harrow Health 8625 |
| B Riley Financial |
Harrow Health and B Riley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and B Riley
The main advantage of trading using opposite Harrow Health and B Riley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health position performs unexpectedly, B Riley 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 B Riley will offset losses from the drop in B Riley'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 |
| B Riley vs. B Riley Financial | B Riley vs. B Riley Financial | B Riley vs. B Riley Financial, | B Riley vs. B Riley Financial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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