Correlation Between CurrentC Power and Harmonic

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

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

Diversification Opportunities for CurrentC Power and Harmonic

0.36

Correlation Coefficient

CurrentC Power  Harmonic

Weak diversification

The 3 months correlation between CurrentC and Harmonic is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic and CurrentC Power 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 CurrentC Power are associated (or correlated) with Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of CurrentC Power i.e., CurrentC Power and Harmonic go up and down completely randomly.

Pair Corralation between CurrentC Power and Harmonic

Given the investment horizon of 90 days CurrentC Power is expected to generate 26.88 times more return on investment than Harmonic. However, CurrentC Power is 26.88 times more volatile than Harmonic. It trades about 0.21 of its potential returns per unit of risk. Harmonic is currently generating about -0.02 per unit of risk. If you would invest  3.72  in CurrentC Power on May 15, 2025 and sell it today you would lose (1.82) from holding CurrentC Power or give up 48.92% of portfolio value over 90 days.

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

CurrentC Power  vs.  Harmonic

CurrentC Power

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Harmonic

Risk-Adjusted Performance

Weakest

Over the last 90 days Harmonic has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable forward indicators, Harmonic is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CurrentC Power and Harmonic

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

The idea behind CurrentC Power and Harmonic 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.