Correlation Between Harbor ETF and THCX

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

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

Diversification Opportunities for Harbor ETF and THCX

-0.33

Correlation Coefficient

Harbor ETF  THCX

Very good diversification

The 3 months correlation between Harbor and THCX is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust and THCX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THCX and Harbor ETF 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 Harbor ETF Trust are associated (or correlated) with THCX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THCX has no effect on the direction of Harbor ETF i.e., Harbor ETF and THCX go up and down completely randomly.

Pair Corralation between Harbor ETF and THCX

If you would invest  2,319  in Harbor ETF Trust on September 16, 2024 and sell it today you would earn a total of  71.00  from holding Harbor ETF Trust or generate 3.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	1.54%
Values	Daily Returns

Harbor ETF Trust  vs.  THCX

Harbor ETF Trust

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor ETF Trust are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Harbor ETF is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

THCX

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days THCX has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong fundamental indicators, THCX is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Harbor ETF and THCX

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

The idea behind Harbor ETF Trust and THCX 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.