Correlation Between Harte Hanks and International Business

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Can any of the company-specific risk be diversified away by investing in both Harte Hanks and International Business 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 Harte Hanks and International Business into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harte Hanks and International Business Machines, you can compare the effects of market volatilities on Harte Hanks and International Business 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 Harte Hanks with a short position of International Business. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harte Hanks and International Business.

Diversification Opportunities for Harte Hanks and International Business

  Correlation Coefficient

Very good diversification

The 3 months correlation between Harte and International is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Harte Hanks and International Business Machine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Business and Harte Hanks 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 Harte Hanks are associated (or correlated) with International Business. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Business has no effect on the direction of Harte Hanks i.e., Harte Hanks and International Business go up and down completely randomly.

Pair Corralation between Harte Hanks and International Business

Considering the 90-day investment horizon Harte Hanks is expected to generate 2.73 times more return on investment than International Business. However, Harte Hanks is 2.73 times more volatile than International Business Machines. It trades about 0.1 of its potential returns per unit of risk. International Business Machines is currently generating about 0.05 per unit of risk. If you would invest  250.00  in Harte Hanks on September 8, 2022 and sell it today you would earn a total of  893.68  from holding Harte Hanks or generate 357.47% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Harte Hanks  vs.  International Business Machine

 Performance (%) 
Harte Hanks 
Harte Performance
0 of 100
Over the last 90 days Harte Hanks has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unsteady performance in the last few months, the Stock's technical indicators remain relatively invariable which may send shares a bit higher in January 2023. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Harte Price Channel

International Business 
International Performance
12 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in International Business Machines are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady fundamental drivers, International Business revealed solid returns over the last few months and may actually be approaching a breakup point.

International Price Channel

Harte Hanks and International Business Volatility Contrast

   Predicted Return Density   

Pair Trading with Harte Hanks and International Business

The main advantage of trading using opposite Harte Hanks and International Business positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harte Hanks position performs unexpectedly, International Business 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 International Business will offset losses from the drop in International Business' long position.
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The idea behind Harte Hanks and International Business Machines 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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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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