Correlation Between Harbor Health and Global X
Can any of the company-specific risk be diversified away by investing in both Harbor Health and Global 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 Harbor Health and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Health Care and Global X Clean, you can compare the effects of market volatilities on Harbor Health and Global 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 Harbor Health with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Health and Global X.
Diversification Opportunities for Harbor Health and Global X
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Harbor and Global is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Health Care and Global X Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Clean and Harbor 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 Harbor Health Care are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Clean has no effect on the direction of Harbor Health i.e., Harbor Health and Global X go up and down completely randomly.
Pair Corralation between Harbor Health and Global X
Given the investment horizon of 90 days Harbor Health Care is expected to under-perform the Global X. In addition to that, Harbor Health is 1.23 times more volatile than Global X Clean. It trades about -0.08 of its total potential returns per unit of risk. Global X Clean is currently generating about 0.13 per unit of volatility. If you would invest 1,793 in Global X Clean on August 28, 2024 and sell it today you would earn a total of 45.00 from holding Global X Clean or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor Health Care vs. Global X Clean
Performance |
| Timeline |
| Harbor Health Care |
| Global X Clean |
Harbor Health and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Health and Global X
The main advantage of trading using opposite Harbor Health and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Health position performs unexpectedly, Global 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 Global X will offset losses from the drop in Global X's long position.| Harbor Health vs. Global X Clean | Harbor Health vs. Global X Renewable | Harbor Health vs. Global X Thematic | Harbor Health vs. Global X AgTech |
| Global X vs. Global X Renewable | Global X vs. Global X AgTech | Global X vs. First Trust Water | Global X vs. Global X Aging |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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