Correlation Between Harmonic and Ebang International

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

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

Diversification Opportunities for Harmonic and Ebang International

-0.4

Correlation Coefficient

Harmonic  Ebang International

Very good diversification

The 3 months correlation between Harmonic and Ebang is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Harmonic and Ebang International Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ebang International and Harmonic 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 Harmonic are associated (or correlated) with Ebang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ebang International has no effect on the direction of Harmonic i.e., Harmonic and Ebang International go up and down completely randomly.

Pair Corralation between Harmonic and Ebang International

Given the investment horizon of 90 days Harmonic is expected to generate 0.31 times more return on investment than Ebang International. However, Harmonic is 3.23 times less risky than Ebang International. It trades about 0.13 of its potential returns per unit of risk. Ebang International Holdings is currently generating about -0.25 per unit of risk. If you would invest  1,300  in Harmonic on October 8, 2024 and sell it today you would earn a total of  55.00  from holding Harmonic or generate 4.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Harmonic  vs.  Ebang International Holdings

Harmonic

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harmonic are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward indicators, Harmonic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Ebang International

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ebang International Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Ebang International displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harmonic and Ebang International

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

The idea behind Harmonic and Ebang International Holdings 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.