Correlation Between Harrow Health and SCCB
Can any of the company-specific risk be diversified away by investing in both Harrow Health and SCCB 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 SCCB 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 SCCB, you can compare the effects of market volatilities on Harrow Health and SCCB 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 SCCB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health and SCCB.
Diversification Opportunities for Harrow Health and SCCB
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harrow and SCCB is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health 8625 and SCCB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCCB 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 SCCB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCCB has no effect on the direction of Harrow Health i.e., Harrow Health and SCCB go up and down completely randomly.
Pair Corralation between Harrow Health and SCCB
If you would invest 2,521 in Harrow Health 8625 on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Harrow Health 8625 or generate 0.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
Harrow Health 8625 vs. SCCB
Performance |
| Timeline |
| Harrow Health 8625 |
| SCCB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harrow Health and SCCB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health and SCCB
The main advantage of trading using opposite Harrow Health and SCCB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health position performs unexpectedly, SCCB 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 SCCB will offset losses from the drop in SCCB'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 |
| SCCB vs. Sachem Capital Corp | SCCB vs. Sachem Capital Corp | SCCB vs. B Riley Financial | SCCB vs. Eagle Point Credit |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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