Correlation Between Harrow Health, and Nano X
Can any of the company-specific risk be diversified away by investing in both Harrow Health, and Nano X 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 Nano X 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 Nano X Imaging, you can compare the effects of market volatilities on Harrow Health, and Nano X 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 Nano X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harrow Health, and Nano X.
Diversification Opportunities for Harrow Health, and Nano X
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harrow and Nano is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health, 11875 and Nano X Imaging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano X Imaging 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 Nano X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano X Imaging has no effect on the direction of Harrow Health, i.e., Harrow Health, and Nano X go up and down completely randomly.
Pair Corralation between Harrow Health, and Nano X
Assuming the 90 days horizon Harrow Health, is expected to generate 5.18 times less return on investment than Nano X. But when comparing it to its historical volatility, Harrow Health, 11875 is 8.66 times less risky than Nano X. It trades about 0.31 of its potential returns per unit of risk. Nano X Imaging is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 676.00 in Nano X Imaging on October 21, 2024 and sell it today you would earn a total of 165.00 from holding Nano X Imaging or generate 24.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harrow Health, 11875 vs. Nano X Imaging
Performance |
| Timeline |
| Harrow Health, 11875 |
| Nano X Imaging |
Harrow Health, and Nano X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harrow Health, and Nano X
The main advantage of trading using opposite Harrow Health, and Nano X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harrow Health, position performs unexpectedly, Nano X 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 Nano X will offset losses from the drop in Nano X's 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 |
| Nano X vs. Abbott Laboratories | Nano X vs. Stryker | Nano X vs. Edwards Lifesciences Corp | Nano X vs. Boston Scientific 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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