Correlation Between Harrow Health and Iradimed

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

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

Diversification Opportunities for Harrow Health and Iradimed

0.59

Correlation Coefficient

Harrow Health  Iradimed

Very weak diversification

The 3 months correlation between Harrow and Iradimed is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Harrow Health and Iradimed Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iradimed and Harrow Health 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 Harrow Health are associated (or correlated) with Iradimed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iradimed has no effect on the direction of Harrow Health i.e., Harrow Health and Iradimed go up and down completely randomly.

Pair Corralation between Harrow Health and Iradimed

Given the investment horizon of 90 days Harrow Health is expected to generate 1.27 times more return on investment than Iradimed. However, Harrow Health is 1.27 times more volatile than Iradimed Co. It trades about 0.12 of its potential returns per unit of risk. Iradimed Co is currently generating about 0.15 per unit of risk. If you would invest  2,473  in Harrow Health on May 5, 2025 and sell it today you would earn a total of  650.00  from holding Harrow Health or generate 26.28% return on investment over 90 days.

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

Harrow Health  vs.  Iradimed Co

Harrow Health

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Harrow Health are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Harrow Health showed solid returns over the last few months and may actually be approaching a breakup point.

Iradimed

Risk-Adjusted Performance

Good

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

Pair Trading with Harrow Health and Iradimed

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

The idea behind Harrow Health and Iradimed Co 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.