Correlation Between DZS and Harmonic

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

By analyzing existing cross correlation between DZS Inc and Harmonic, you can compare the effects of market volatilities on DZS and Harmonic 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 DZS with a short position of Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DZS and Harmonic.

Diversification Opportunities for DZS and Harmonic

0.0

Correlation Coefficient

DZS  Harmonic

Pay attention - limited upside

The 3 months correlation between DZS and Harmonic is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding DZS Inc and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic and DZS 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 DZS Inc are associated (or correlated) with Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of DZS i.e., DZS and Harmonic go up and down completely randomly.

Pair Corralation between DZS and Harmonic

If you would invest (100.00) in DZS Inc on December 1, 2024 and sell it today you would earn a total of  100.00  from holding DZS Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DZS Inc  vs.  Harmonic

DZS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days DZS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DZS is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Harmonic

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harmonic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with DZS and Harmonic

The main advantage of trading using opposite DZS and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DZS position performs unexpectedly, Harmonic 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 Harmonic will offset losses from the drop in Harmonic's long position.

The idea behind DZS Inc and Harmonic 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.