Correlation Between Harvest Broadcom and Paradigm Micro

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

By analyzing existing cross correlation between Harvest Broadcom Enhanced and Paradigm Micro Cap Fund, you can compare the effects of market volatilities on Harvest Broadcom and Paradigm Micro 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 Harvest Broadcom with a short position of Paradigm Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harvest Broadcom and Paradigm Micro.

Diversification Opportunities for Harvest Broadcom and Paradigm Micro

0.21

Correlation Coefficient

Harvest Broadcom  Paradigm Micro

Modest diversification

The 3 months correlation between Harvest and Paradigm is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Harvest Broadcom Enhanced and Paradigm Micro Cap Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paradigm Micro Cap and Harvest Broadcom 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 Harvest Broadcom Enhanced are associated (or correlated) with Paradigm Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paradigm Micro Cap has no effect on the direction of Harvest Broadcom i.e., Harvest Broadcom and Paradigm Micro go up and down completely randomly.

Pair Corralation between Harvest Broadcom and Paradigm Micro

Assuming the 90 days trading horizon Harvest Broadcom Enhanced is expected to generate 1.47 times more return on investment than Paradigm Micro. However, Harvest Broadcom is 1.47 times more volatile than Paradigm Micro Cap Fund. It trades about 0.02 of its potential returns per unit of risk. Paradigm Micro Cap Fund is currently generating about -0.1 per unit of risk. If you would invest  1,894  in Harvest Broadcom Enhanced on October 8, 2025 and sell it today you would earn a total of  12.00  from holding Harvest Broadcom Enhanced or generate 0.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Harvest Broadcom Enhanced  vs.  Paradigm Micro Cap Fund

Harvest Broadcom Enhanced

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest Broadcom Enhanced are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Harvest Broadcom is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Paradigm Micro Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Paradigm Micro Cap Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of weak performance in the last few months, the Fund's basic indicators remain fairly strong which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long term up-swing for the fund investors.

Pair Trading with Harvest Broadcom and Paradigm Micro

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

The idea behind Harvest Broadcom Enhanced and Paradigm Micro Cap Fund 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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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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.