Correlation Between Delaware Emerging and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Delaware Emerging 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 Delaware Emerging and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Delaware Emerging Markets and Harding Loevner Institutional, you can compare the effects of market volatilities on Delaware Emerging 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 Delaware Emerging with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Delaware Emerging and Harding Loevner.
Diversification Opportunities for Delaware Emerging and Harding Loevner
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Delaware and Harding is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Delaware Emerging Markets and Harding Loevner Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inst and Delaware Emerging 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 Delaware Emerging Markets 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 Inst has no effect on the direction of Delaware Emerging i.e., Delaware Emerging and Harding Loevner go up and down completely randomly.
Pair Corralation between Delaware Emerging and Harding Loevner
Assuming the 90 days horizon Delaware Emerging Markets is expected to generate 1.31 times more return on investment than Harding Loevner. However, Delaware Emerging is 1.31 times more volatile than Harding Loevner Institutional. It trades about -0.02 of its potential returns per unit of risk. Harding Loevner Institutional is currently generating about -0.11 per unit of risk. If you would invest 2,126 in Delaware Emerging Markets on January 26, 2024 and sell it today you would lose (11.00) from holding Delaware Emerging Markets or give up 0.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Delaware Emerging Markets vs. Harding Loevner Institutional
Performance |
| Timeline |
| Delaware Emerging Markets |
| Harding Loevner Inst |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Delaware Emerging and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Delaware Emerging and Harding Loevner
The main advantage of trading using opposite Delaware Emerging and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Delaware Emerging 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.| Delaware Emerging vs. Aim Investment Securities | Delaware Emerging vs. Prudential Government Income | Delaware Emerging vs. Inverse Government Long | Delaware Emerging vs. Government Securities Fund |
| Harding Loevner vs. Legg Mason Bw | Harding Loevner vs. Rational Strategic Allocation | Harding Loevner vs. Vp Large Pany | Harding Loevner vs. Old Westbury Large |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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