Correlation Between Harman International and Universal Electronics
Can any of the company-specific risk be diversified away by investing in both Harman International and Universal Electronics 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 Universal Electronics 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 Universal Electronics, you can compare the effects of market volatilities on Harman International and Universal Electronics 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 Universal Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harman International and Universal Electronics.
Diversification Opportunities for Harman International and Universal Electronics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Harman and Universal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harman International Industrie and Universal Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Electronics 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 Universal Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Electronics has no effect on the direction of Harman International i.e., Harman International and Universal Electronics go up and down completely randomly.
Pair Corralation between Harman International and Universal Electronics
If you would invest 840.00 in Universal Electronics on January 20, 2024 and sell it today you would earn a total of 168.00 from holding Universal Electronics or generate 20.0% 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. Universal Electronics
Performance |
| Timeline |
| Harman International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Universal Electronics |
Harman International and Universal Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harman International and Universal Electronics
The main advantage of trading using opposite Harman International and Universal Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harman International position performs unexpectedly, Universal Electronics 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 Universal Electronics will offset losses from the drop in Universal Electronics' long position.| Harman International vs. Semtech | Harman International vs. Analog Devices | Harman International vs. NETGEAR | Harman International vs. Plexus Corp |
| Universal Electronics vs. LG Display Co | Universal Electronics vs. The Singing Machine | Universal Electronics vs. Wearable Devices | Universal Electronics vs. Zepp Health Corp |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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