Correlation Between Harbor Health and Global X
Can any of the company-specific risk be diversified away by investing in both Harbor Health and Global X 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 Health and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Health Care and Global X Funds, you can compare the effects of market volatilities on Harbor Health and Global X 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 Health with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Health and Global X.
Diversification Opportunities for Harbor Health and Global X
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbor and Global is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Health Care and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds and Harbor 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 Harbor Health Care are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Harbor Health i.e., Harbor Health and Global X go up and down completely randomly.
Pair Corralation between Harbor Health and Global X
Given the investment horizon of 90 days Harbor Health is expected to generate 4.41 times less return on investment than Global X. But when comparing it to its historical volatility, Harbor Health Care is 1.04 times less risky than Global X. It trades about 0.06 of its potential returns per unit of risk. Global X Funds is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,747 in Global X Funds on December 28, 2024 and sell it today you would earn a total of 906.00 from holding Global X Funds or generate 24.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Harbor Health Care vs. Global X Funds
Performance |
Timeline |
Harbor Health Care |
Global X Funds |
Harbor Health and Global X Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Harbor Health and Global X
The main advantage of trading using opposite Harbor Health and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Health position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.Harbor Health vs. Horizon Kinetics Medical | Harbor Health vs. Ginkgo Bioworks Holdings | Harbor Health vs. Myriad Genetics |
Global X vs. Ultimus Managers Trust | Global X vs. American Beacon Select | Global X vs. First Trust Indxx | Global X vs. Direxion Daily Regional |
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.
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