Correlation Between Gtn and Harvest Technology

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

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

Diversification Opportunities for Gtn and Harvest Technology

0.21

Correlation Coefficient

Gtn  Harvest Technology

Modest diversification

The 3 months correlation between Gtn and Harvest is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Gtn and Harvest Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Technology and Gtn 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 Gtn are associated (or correlated) with Harvest Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Technology has no effect on the direction of Gtn i.e., Gtn and Harvest Technology go up and down completely randomly.

Pair Corralation between Gtn and Harvest Technology

Assuming the 90 days trading horizon Gtn is expected to generate 0.42 times more return on investment than Harvest Technology. However, Gtn is 2.38 times less risky than Harvest Technology. It trades about 0.05 of its potential returns per unit of risk. Harvest Technology Group is currently generating about -0.15 per unit of risk. If you would invest  57.00  in Gtn on December 21, 2024 and sell it today you would earn a total of  3.00  from holding Gtn or generate 5.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Gtn  vs.  Harvest Technology Group

Gtn

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Gtn are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Gtn may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Harvest Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harvest Technology Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental 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 Gtn and Harvest Technology

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

The idea behind Gtn and Harvest Technology Group 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.