Correlation Between Harvest Global and Trisura

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

By analyzing existing cross correlation between Harvest Global REIT and Trisura Group, you can compare the effects of market volatilities on Harvest Global and Trisura 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 Harvest Global with a short position of Trisura. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Global and Trisura.

Diversification Opportunities for Harvest Global and Trisura

0.18

Correlation Coefficient

Harvest Global  Trisura

Average diversification

The 3 months correlation between Harvest and Trisura is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Global REIT and Trisura Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trisura Group and Harvest Global 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 Harvest Global REIT are associated (or correlated) with Trisura. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trisura Group has no effect on the direction of Harvest Global i.e., Harvest Global and Trisura go up and down completely randomly.

Pair Corralation between Harvest Global and Trisura

Assuming the 90 days trading horizon Harvest Global REIT is expected to generate 0.48 times more return on investment than Trisura. However, Harvest Global REIT is 2.09 times less risky than Trisura. It trades about 0.02 of its potential returns per unit of risk. Trisura Group is currently generating about 0.0 per unit of risk. If you would invest  640.00  in Harvest Global REIT on September 3, 2024 and sell it today you would earn a total of  6.00  from holding Harvest Global REIT or generate 0.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Harvest Global REIT  vs.  Trisura Group

Harvest Global REIT

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest Global REIT are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Harvest Global is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Trisura Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Trisura Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Trisura is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Harvest Global and Trisura

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

The idea behind Harvest Global REIT and Trisura Group 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.