Correlation Between INC Research and Harrow Health,

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

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

Diversification Opportunities for INC Research and Harrow Health,

-0.04

Correlation Coefficient

INC Research  Harrow Health,

Good diversification

The 3 months correlation between INC and Harrow is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding INC Research Holdings 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 INC Research 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 INC Research Holdings 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 INC Research i.e., INC Research and Harrow Health, go up and down completely randomly.

Pair Corralation between INC Research and Harrow Health,

Given the investment horizon of 90 days INC Research Holdings is expected to generate 12.51 times more return on investment than Harrow Health,. However, INC Research is 12.51 times more volatile than Harrow Health, 11875. It trades about 0.17 of its potential returns per unit of risk. Harrow Health, 11875 is currently generating about 0.08 per unit of risk. If you would invest  140.00  in INC Research Holdings on October 6, 2024 and sell it today you would earn a total of  26.00  from holding INC Research Holdings or generate 18.57% return on investment over 90 days.

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

INC Research Holdings  vs.  Harrow Health, 11875

INC Research Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days INC Research Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental indicators, INC Research is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Harrow Health, 11875

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harrow Health, 11875 has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with INC Research and Harrow Health,

The main advantage of trading using opposite INC Research and Harrow Health, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INC Research 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 INC Research Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.