Correlation Between Harman International and Phihong Technology
Can any of the company-specific risk be diversified away by investing in both Harman International and Phihong Technology 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 Harman International and Phihong Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harman International Industries and Phihong Technology Co, you can compare the effects of market volatilities on Harman International and Phihong Technology 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 Harman International with a short position of Phihong Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harman International and Phihong Technology.
Diversification Opportunities for Harman International and Phihong Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harman and Phihong is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harman International Industrie and Phihong Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Phihong Technology and Harman International 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 Harman International Industries are associated (or correlated) with Phihong Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Phihong Technology has no effect on the direction of Harman International i.e., Harman International and Phihong Technology go up and down completely randomly.
Pair Corralation between Harman International and Phihong Technology
If you would invest 3,865 in Phihong Technology Co on January 17, 2024 and sell it today you would earn a total of 1,365 from holding Phihong Technology Co or generate 35.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Harman International Industrie vs. Phihong Technology Co
Performance |
| Timeline |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Phihong Technology |
Harman International and Phihong Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harman International and Phihong Technology
The main advantage of trading using opposite Harman International and Phihong Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harman International position performs unexpectedly, Phihong Technology 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 Phihong Technology will offset losses from the drop in Phihong Technology's long position.| Harman International vs. Sphere Entertainment Co | Harman International vs. Ecovyst | Harman International vs. Hawkins | Harman International vs. Dow Inc |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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