Correlation Between Energy Services and Harbor High-yield

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

By analyzing existing cross correlation between Energy Services Fund and Harbor High Yield Opportunities, you can compare the effects of market volatilities on Energy Services and Harbor High-yield 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 Energy Services with a short position of Harbor High-yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Services and Harbor High-yield.

Diversification Opportunities for Energy Services and Harbor High-yield

0.0

Correlation Coefficient

Energy Services  Harbor High-yield

Pay attention - limited upside

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

Pair Corralation between Energy Services and Harbor High-yield

If you would invest  23,254  in Energy Services Fund on September 3, 2024 and sell it today you would earn a total of  1,373  from holding Energy Services Fund or generate 5.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Energy Services Fund  vs.  Harbor High Yield Opportunitie

Energy Services

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Energy Services Fund are ranked lower than 4 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Energy Services may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Harbor High Yield

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harbor High Yield Opportunities has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Harbor High-yield is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Energy Services and Harbor High-yield

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

The idea behind Energy Services Fund and Harbor High Yield Opportunities 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.