Correlation Between Europacific Growth and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Europacific Growth and Harding Loevner 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 Europacific Growth and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Europacific Growth Fund and Harding Loevner International, you can compare the effects of market volatilities on Europacific Growth and Harding Loevner 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 Europacific Growth with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Europacific Growth and Harding Loevner.
Diversification Opportunities for Europacific Growth and Harding Loevner
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Europacific and Harding is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Europacific Growth Fund and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte and Europacific Growth 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 Europacific Growth Fund are associated (or correlated) with Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Inte has no effect on the direction of Europacific Growth i.e., Europacific Growth and Harding Loevner go up and down completely randomly.
Pair Corralation between Europacific Growth and Harding Loevner
Assuming the 90 days horizon Europacific Growth Fund is expected to generate 0.88 times more return on investment than Harding Loevner. However, Europacific Growth Fund is 1.14 times less risky than Harding Loevner. It trades about -0.35 of its potential returns per unit of risk. Harding Loevner International is currently generating about -0.4 per unit of risk. If you would invest 5,786 in Europacific Growth Fund on January 20, 2024 and sell it today you would lose (229.00) from holding Europacific Growth Fund or give up 3.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Europacific Growth Fund vs. Harding Loevner International
Performance |
| Timeline |
| Europacific Growth |
| Harding Loevner Inte |
Europacific Growth and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Europacific Growth and Harding Loevner
The main advantage of trading using opposite Europacific Growth and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Europacific Growth position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Europacific Growth vs. Income Fund Of | Europacific Growth vs. New World Fund | Europacific Growth vs. American Mutual Fund | Europacific Growth vs. American Mutual Fund |
| Harding Loevner vs. Lazard International Strategic | Harding Loevner vs. Delaware Value Fund | Harding Loevner vs. American Beacon International | Harding Loevner vs. Hartford Schroders Emerging |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |