Correlation Between Zillow Group and Harbor ETF

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

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

Diversification Opportunities for Zillow Group and Harbor ETF

0.03

Correlation Coefficient

Zillow Group  Harbor ETF

Significant diversification

The 3 months correlation between Zillow and Harbor is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Zillow Group Class and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust and Zillow Group 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 Zillow Group Class are associated (or correlated) with Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Zillow Group i.e., Zillow Group and Harbor ETF go up and down completely randomly.

Pair Corralation between Zillow Group and Harbor ETF

Taking into account the 90-day investment horizon Zillow Group Class is expected to generate 2.0 times more return on investment than Harbor ETF. However, Zillow Group is 2.0 times more volatile than Harbor ETF Trust. It trades about 0.1 of its potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.01 per unit of risk. If you would invest  7,721  in Zillow Group Class on October 25, 2024 and sell it today you would earn a total of  248.00  from holding Zillow Group Class or generate 3.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	94.74%
Values	Daily Returns

Zillow Group Class  vs.  Harbor ETF Trust

Zillow Group Class

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Zillow Group Class are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Zillow Group showed solid returns over the last few months and may actually be approaching a breakup point.

Harbor ETF Trust

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor ETF Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Harbor ETF is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Zillow Group and Harbor ETF

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

The idea behind Zillow Group Class and Harbor ETF Trust 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..