Correlation Between Harrow Health and Saratoga Investment
Can any of the company-specific risk be diversified away by investing in both Harrow Health and Saratoga Investment 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 Saratoga Investment 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 Saratoga Investment Corp, you can compare the effects of market volatilities on Harrow Health and Saratoga Investment 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 Saratoga Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and Saratoga Investment.
Diversification Opportunities for Harrow Health and Saratoga Investment
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Harrow and Saratoga is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 and Saratoga Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saratoga Investment Corp 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 Saratoga Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saratoga Investment Corp has no effect on the direction of Harrow Health i.e., Harrow Health and Saratoga Investment go up and down completely randomly.
Pair Corralation between Harrow Health and Saratoga Investment
Assuming the 90 days horizon Harrow Health 8625 is expected to under-perform the Saratoga Investment. But the stock apears to be less risky and, when comparing its historical volatility, Harrow Health 8625 is 1.59 times less risky than Saratoga Investment. The stock trades about -0.05 of its potential returns per unit of risk. The Saratoga Investment Corp is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,415 in Saratoga Investment Corp on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Saratoga Investment Corp or generate 0.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health 8625 vs. Saratoga Investment Corp
Performance |
| Timeline |
| Harrow Health 8625 |
| Saratoga Investment Corp |
Harrow Health and Saratoga Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and Saratoga Investment
The main advantage of trading using opposite Harrow Health and Saratoga Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health position performs unexpectedly, Saratoga Investment 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 Saratoga Investment will offset losses from the drop in Saratoga Investment'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 |
| Saratoga Investment vs. ATS Corporation | Saratoga Investment vs. Deswell Industries | Saratoga Investment vs. Chunghwa Telecom Co | Saratoga Investment vs. Highway Holdings Limited |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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