Correlation Between Harbor Health and Fidelity MSCI

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

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

Diversification Opportunities for Harbor Health and Fidelity MSCI

0.74

Correlation Coefficient

Harbor Health  Fidelity MSCI

Poor diversification

The 3 months correlation between Harbor and Fidelity is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Health Care and Fidelity MSCI Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Health and Harbor 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 Harbor Health Care are associated (or correlated) with Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Health has no effect on the direction of Harbor Health i.e., Harbor Health and Fidelity MSCI go up and down completely randomly.

Pair Corralation between Harbor Health and Fidelity MSCI

Given the investment horizon of 90 days Harbor Health Care is expected to generate 1.17 times more return on investment than Fidelity MSCI. However, Harbor Health is 1.17 times more volatile than Fidelity MSCI Health. It trades about 0.13 of its potential returns per unit of risk. Fidelity MSCI Health is currently generating about 0.0 per unit of risk. If you would invest  2,464  in Harbor Health Care on May 7, 2025 and sell it today you would earn a total of  263.00  from holding Harbor Health Care or generate 10.67% return on investment over 90 days.

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

Harbor Health Care  vs.  Fidelity MSCI Health

Harbor Health Care

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor Health Care are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Harbor Health may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Fidelity MSCI Health

Risk-Adjusted Performance

Weakest

Over the last 90 days Fidelity MSCI Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound essential indicators, Fidelity MSCI is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Harbor Health and Fidelity MSCI

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

The idea behind Harbor Health Care and Fidelity MSCI Health 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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.