Correlation Between Harvest MicroStrategy and Harvest Meta

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

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

Diversification Opportunities for Harvest MicroStrategy and Harvest Meta

0.55

Correlation Coefficient

Harvest MicroStrategy  Harvest Meta

Very weak diversification

The 3 months correlation between Harvest and Harvest is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Harvest MicroStrategy Enhanced and Harvest Meta Enhanced in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harvest Meta Enhanced and Harvest MicroStrategy 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 MicroStrategy Enhanced are associated (or correlated) with Harvest Meta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harvest Meta Enhanced has no effect on the direction of Harvest MicroStrategy i.e., Harvest MicroStrategy and Harvest Meta go up and down completely randomly.

Pair Corralation between Harvest MicroStrategy and Harvest Meta

Assuming the 90 days trading horizon Harvest MicroStrategy is expected to generate 1.89 times less return on investment than Harvest Meta. In addition to that, Harvest MicroStrategy is 1.55 times more volatile than Harvest Meta Enhanced. It trades about 0.08 of its total potential returns per unit of risk. Harvest Meta Enhanced is currently generating about 0.23 per unit of volatility. If you would invest  952.00  in Harvest Meta Enhanced on April 25, 2025 and sell it today you would earn a total of  286.00  from holding Harvest Meta Enhanced or generate 30.04% return on investment over 90 days.

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

Harvest MicroStrategy Enhanced  vs.  Harvest Meta Enhanced

Harvest MicroStrategy

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest MicroStrategy Enhanced are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Harvest MicroStrategy displayed solid returns over the last few months and may actually be approaching a breakup point.

Harvest Meta Enhanced

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Harvest Meta Enhanced are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Harvest Meta displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Harvest MicroStrategy and Harvest Meta

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

The idea behind Harvest MicroStrategy Enhanced and Harvest Meta Enhanced 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.