Correlation Between SiriusPoint and Harrow Health
Can any of the company-specific risk be diversified away by investing in both SiriusPoint 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 SiriusPoint and Harrow Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SiriusPoint and Harrow Health 8625, you can compare the effects of market volatilities on SiriusPoint 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 SiriusPoint with a short position of Harrow Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of SiriusPoint and Harrow Health.
Diversification Opportunities for SiriusPoint and Harrow Health
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SiriusPoint and Harrow is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding SiriusPoint 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 SiriusPoint 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 SiriusPoint 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 SiriusPoint i.e., SiriusPoint and Harrow Health go up and down completely randomly.
Pair Corralation between SiriusPoint and Harrow Health
Assuming the 90 days trading horizon SiriusPoint is expected to generate 1.08 times more return on investment than Harrow Health. However, SiriusPoint is 1.08 times more volatile than Harrow Health 8625. It trades about 0.18 of its potential returns per unit of risk. Harrow Health 8625 is currently generating about 0.1 per unit of risk. If you would invest 2,501 in SiriusPoint on August 28, 2024 and sell it today you would earn a total of 34.00 from holding SiriusPoint or generate 1.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
SiriusPoint vs. Harrow Health 8625
Performance |
| Timeline |
| SiriusPoint |
| Harrow Health 8625 |
SiriusPoint and Harrow Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SiriusPoint and Harrow Health
The main advantage of trading using opposite SiriusPoint and Harrow Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SiriusPoint 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.| SiriusPoint vs. RLJ Lodging Trust | SiriusPoint vs. Argo Group International | SiriusPoint vs. New York Mortgage | SiriusPoint vs. Aquagold International |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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