Correlation Between Eagle Pharmaceuticals and Harrow Health,

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

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

Diversification Opportunities for Eagle Pharmaceuticals and Harrow Health,

-0.62

Correlation Coefficient

Eagle Pharmaceuticals  Harrow Health,

Excellent diversification

The 3 months correlation between Eagle and Harrow is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pharmaceuticals 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 Eagle Pharmaceuticals 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 Eagle Pharmaceuticals 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 Eagle Pharmaceuticals i.e., Eagle Pharmaceuticals and Harrow Health, go up and down completely randomly.

Pair Corralation between Eagle Pharmaceuticals and Harrow Health,

Given the investment horizon of 90 days Eagle Pharmaceuticals is expected to under-perform the Harrow Health,. In addition to that, Eagle Pharmaceuticals is 7.51 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  1,994  in Harrow Health, 11875 on September 3, 2024 and sell it today you would earn a total of  630.00  from holding Harrow Health, 11875 or generate 31.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	93.05%
Values	Daily Returns

Eagle Pharmaceuticals  vs.  Harrow Health, 11875

Eagle Pharmaceuticals

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eagle Pharmaceuticals 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 basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Harrow Health, 11875

Risk-Adjusted Performance

7 of 100

OK

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 current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Eagle Pharmaceuticals and Harrow Health,

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

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.