Correlation Between Babcock Wilcox and Harrow Health,

Can any of the company-specific risk be diversified away by investing in both Babcock Wilcox 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 Babcock Wilcox and Harrow Health, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Babcock Wilcox Enterprises, and Harrow Health, 11875, you can compare the effects of market volatilities on Babcock Wilcox 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 Babcock Wilcox with a short position of Harrow Health,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babcock Wilcox and Harrow Health,.

Diversification Opportunities for Babcock Wilcox and Harrow Health,

0.18

Correlation Coefficient

Babcock Wilcox  Harrow Health,

Average diversification

The 3 months correlation between Babcock and Harrow is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Babcock Wilcox Enterprises, and Harrow Health, 11875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harrow Health, 11875 and Babcock Wilcox 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 Babcock Wilcox Enterprises, 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, 11875 has no effect on the direction of Babcock Wilcox i.e., Babcock Wilcox and Harrow Health, go up and down completely randomly.

Pair Corralation between Babcock Wilcox and Harrow Health,

Given the investment horizon of 90 days Babcock Wilcox Enterprises, is expected to under-perform the Harrow Health,. In addition to that, Babcock Wilcox is 1.39 times more volatile than Harrow Health, 11875. It trades about -0.09 of its total potential returns per unit of risk. Harrow Health, 11875 is currently generating about 0.09 per unit of volatility. If you would invest  2,558  in Harrow Health, 11875 on December 21, 2024 and sell it today you would earn a total of  112.00  from holding Harrow Health, 11875 or generate 4.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Babcock Wilcox Enterprises,  vs.  Harrow Health, 11875

Babcock Wilcox Enter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Babcock Wilcox Enterprises, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest conflicting performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Harrow Health, 11875

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Harrow Health, 11875 are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Harrow Health, is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Babcock Wilcox and Harrow Health,

The main advantage of trading using opposite Babcock Wilcox and Harrow Health, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babcock Wilcox 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.

The idea behind Babcock Wilcox Enterprises, and Harrow Health, 11875 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.