Correlation Between Lantheus Holdings and Harrow Health,

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

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

Diversification Opportunities for Lantheus Holdings and Harrow Health,

0.07

Correlation Coefficient

Lantheus Holdings  Harrow Health,

Significant diversification

The 3 months correlation between Lantheus and Harrow is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Lantheus 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 Lantheus Holdings 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 Lantheus 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 Lantheus Holdings i.e., Lantheus Holdings and Harrow Health, go up and down completely randomly.

Pair Corralation between Lantheus Holdings and Harrow Health,

Given the investment horizon of 90 days Lantheus Holdings is expected to generate 3.68 times more return on investment than Harrow Health,. However, Lantheus Holdings is 3.68 times more volatile than Harrow Health, 11875. It trades about 0.08 of its potential returns per unit of risk. Harrow Health, 11875 is currently generating about 0.06 per unit of risk. If you would invest  8,884  in Lantheus Holdings on October 5, 2024 and sell it today you would earn a total of  237.00  from holding Lantheus Holdings or generate 2.67% return on investment over 90 days.

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

Lantheus Holdings  vs.  Harrow Health, 11875

Lantheus Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lantheus Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

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 Lantheus Holdings and Harrow Health,

The main advantage of trading using opposite Lantheus Holdings and Harrow Health, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lantheus Holdings 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 Lantheus 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.