Correlation Between Harvest Bank and Evolve Banks

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

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

Diversification Opportunities for Harvest Bank and Evolve Banks

0.0

Correlation Coefficient

Harvest Bank  Evolve Banks

Pay attention - limited upside

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

Pair Corralation between Harvest Bank and Evolve Banks

If you would invest (100.00) in Harvest Bank Leaders on December 31, 2024 and sell it today you would earn a total of  100.00  from holding Harvest Bank Leaders 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

Harvest Bank Leaders  vs.  Evolve Banks Enhanced

Harvest Bank Leaders

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harvest Bank Leaders has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Harvest Bank is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Evolve Banks Enhanced

Risk-Adjusted Performance

Very Weak

Over the last 90 days Evolve Banks Enhanced has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Evolve Banks is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Harvest Bank and Evolve Banks

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

The idea behind Harvest Bank Leaders and Evolve Banks Enhanced 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.