Correlation Between Stratasys and Harmonic
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Harmonic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Harmonic, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Harmonic.
Diversification Opportunities for Stratasys and Harmonic
Poor diversification
The 3 months correlation between Stratasys and Harmonic is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Harmonic go up and down completely randomly.
Pair Corralation between Stratasys and Harmonic
Given the investment horizon of 90 days Stratasys is expected to under-perform the Harmonic. In addition to that, Stratasys is 1.85 times more volatile than Harmonic. It trades about -0.04 of its total potential returns per unit of risk. Harmonic is currently generating about -0.01 per unit of volatility. If you would invest 995.00 in Harmonic on September 8, 2025 and sell it today you would lose (26.00) from holding Harmonic or give up 2.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Harmonic
Performance |
| Timeline |
| Stratasys |
| Harmonic |
Stratasys and Harmonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Harmonic
The main advantage of trading using opposite Stratasys and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Lincoln Educational Services | Stratasys vs. Zane Interactive Publishing | Stratasys vs. Technology Telecommunication Acquisition | Stratasys vs. Gamma Communications plc |
| Harmonic vs. Technology Telecommunication Acquisition | Harmonic vs. Wireless Xcessories Group | Harmonic vs. Airborne Wireless Network | Harmonic vs. Xtera Communications |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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