Correlation Between IMedia Brands and Harrow Health
Can any of the company-specific risk be diversified away by investing in both IMedia Brands and Harrow Health 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 IMedia Brands and Harrow Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IMedia Brands 85 and Harrow Health 8625, you can compare the effects of market volatilities on IMedia Brands and Harrow Health 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 IMedia Brands with a short position of Harrow Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of IMedia Brands and Harrow Health.
Diversification Opportunities for IMedia Brands and Harrow Health
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between IMedia and Harrow is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding IMedia Brands 85 and Harrow Health 8625 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harrow Health 8625 and IMedia Brands 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 IMedia Brands 85 are associated (or correlated) with Harrow Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harrow Health 8625 has no effect on the direction of IMedia Brands i.e., IMedia Brands and Harrow Health go up and down completely randomly.
Pair Corralation between IMedia Brands and Harrow Health
Assuming the 90 days horizon IMedia Brands 85 is expected to under-perform the Harrow Health. In addition to that, IMedia Brands is 14.56 times more volatile than Harrow Health 8625. It trades about -0.06 of its total potential returns per unit of risk. Harrow Health 8625 is currently generating about 0.07 per unit of volatility. If you would invest 2,002 in Harrow Health 8625 on September 2, 2024 and sell it today you would earn a total of 537.00 from holding Harrow Health 8625 or generate 26.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.04% |
| Values | Daily Returns |
IMedia Brands 85 vs. Harrow Health 8625
Performance |
| Timeline |
| IMedia Brands 85 |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Harrow Health 8625 |
IMedia Brands and Harrow Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IMedia Brands and Harrow Health
The main advantage of trading using opposite IMedia Brands and Harrow Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IMedia Brands position performs unexpectedly, Harrow Health 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 Harrow Health will offset losses from the drop in Harrow Health's long position.| IMedia Brands vs. Greenidge Generation Holdings | IMedia Brands vs. Synchronoss Technologies 8375 | IMedia Brands vs. Fossil Group 7 | IMedia Brands vs. Harrow Health 8625 |
| Harrow Health vs. Babcock Wilcox Enterprises, | Harrow Health vs. Babcock Wilcox Enterprises | Harrow Health vs. B Riley Financial | Harrow Health vs. SiriusPoint |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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