Correlation Between Harrow Health, and Eagle Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Harrow Health, and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harrow Health, 11875 and Eagle Pharmaceuticals, you can compare the effects of market volatilities on Harrow Health, and Eagle Pharmaceuticals 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 Eagle Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health, and Eagle Pharmaceuticals.
Diversification Opportunities for Harrow Health, and Eagle Pharmaceuticals
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Harrow and Eagle is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health, 11875 and Eagle Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Pharmaceuticals 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, 11875 are associated (or correlated) with Eagle Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Pharmaceuticals has no effect on the direction of Harrow Health, i.e., Harrow Health, and Eagle Pharmaceuticals go up and down completely randomly.
Pair Corralation between Harrow Health, and Eagle Pharmaceuticals
Assuming the 90 days horizon Harrow Health, 11875 is expected to generate 0.13 times more return on investment than Eagle Pharmaceuticals. However, Harrow Health, 11875 is 7.54 times less risky than Eagle Pharmaceuticals. It trades about 0.08 of its potential returns per unit of risk. Eagle Pharmaceuticals is currently generating about -0.1 per unit of risk. If you would invest 2,053 in Harrow Health, 11875 on August 27, 2024 and sell it today you would earn a total of 582.00 from holding Harrow Health, 11875 or generate 28.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 92.09% |
| Values | Daily Returns |
Harrow Health, 11875 vs. Eagle Pharmaceuticals
Performance |
| Timeline |
| Harrow Health, 11875 |
| Eagle Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Harrow Health, and Eagle Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health, and Eagle Pharmaceuticals
The main advantage of trading using opposite Harrow Health, and Eagle Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health, position performs unexpectedly, Eagle Pharmaceuticals 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 Eagle Pharmaceuticals will offset losses from the drop in Eagle Pharmaceuticals' long position.| Harrow Health, vs. Harrow Health 8625 | Harrow Health, vs. Babcock Wilcox Enterprises, | Harrow Health, vs. Runway Growth Finance | Harrow Health, vs. MSCI ACWI exAUCONSUMER |
| Eagle Pharmaceuticals vs. ANI Pharmaceuticals | Eagle Pharmaceuticals vs. Phibro Animal Health | Eagle Pharmaceuticals vs. Prestige Brand Holdings | Eagle Pharmaceuticals vs. Collegium Pharmaceutical |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |