Correlation Between Harrow Health, and Im Cannabis

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

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

Diversification Opportunities for Harrow Health, and Im Cannabis

-0.15

Correlation Coefficient

Harrow Health,  Im Cannabis

Good diversification

The 3 months correlation between Harrow and IMCC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health, 11875 and Im Cannabis Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Im Cannabis Corp and Harrow Health, 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 Harrow Health, 11875 are associated (or correlated) with Im Cannabis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Im Cannabis Corp has no effect on the direction of Harrow Health, i.e., Harrow Health, and Im Cannabis go up and down completely randomly.

Pair Corralation between Harrow Health, and Im Cannabis

Assuming the 90 days horizon Harrow Health, 11875 is expected to generate 0.08 times more return on investment than Im Cannabis. However, Harrow Health, 11875 is 12.5 times less risky than Im Cannabis. It trades about 0.09 of its potential returns per unit of risk. Im Cannabis Corp is currently generating about 0.01 per unit of risk. If you would invest  1,998  in Harrow Health, 11875 on October 21, 2024 and sell it today you would earn a total of  694.00  from holding Harrow Health, 11875 or generate 34.73% return on investment over 90 days.

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

Harrow Health, 11875  vs.  Im Cannabis Corp

Harrow Health, 11875

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Harrow Health, 11875 are ranked lower than 11 (%) 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.

Im Cannabis Corp

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Im Cannabis Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Im Cannabis exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harrow Health, and Im Cannabis

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

The idea behind Harrow Health, 11875 and Im Cannabis Corp 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.