Harding Loevner International Fund Volatility
| HLMNX Fund | USD 25.69 0.04 0.16% |
We consider Harding Loevner very steady. Harding Loevner Inte holds Efficiency (Sharpe) Ratio of 0.0434, which attests that the entity had a 0.0434% return per unit of risk over the last 3 months. We have found twenty-seven technical indicators for Harding Loevner Inte, which you can use to evaluate the volatility of the entity. Please check out Harding Loevner's Risk Adjusted Performance of 0.0338, market risk adjusted performance of 0.041, and Downside Deviation of 0.743 to validate if the risk estimate we provide is consistent with the expected return of 0.029%. Key indicators related to Harding Loevner's volatility include:
720 Days Market Risk | Chance Of Distress | 720 Days Economic Sensitivity |
Harding Loevner Mutual Fund volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Harding daily returns, and it is calculated using variance and standard deviation. We also use Harding's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Harding Loevner volatility.
Harding |
Since volatility provides investors with entry points to take advantage of stock prices, companies, such as Harding Loevner can benefit from it. Downward market volatility can be a perfect environment for investors who play the long game. Here, they may decide to buy additional stocks of Harding Loevner at lower prices. For example, an investor can purchase Harding stock that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Harding Loevner's stock rises, investors can sell out and invest the proceeds in other equities with better opportunities. Investing when markets are volatile with better valuations will accord both investors and companies the opportunity to generate better long-term returns.
Moving together with Harding Mutual Fund
| 0.9 | HLEMX | Harding Loevner Emerging | PairCorr |
| 0.85 | HLEZX | Harding Loevner Inst | PairCorr |
| 0.93 | HLGZX | Harding Loevner Global | PairCorr |
| 0.89 | HLFFX | Harding Loevner Frontier | PairCorr |
| 0.93 | HLFMX | Harding Loevner Frontier | PairCorr |
| 1.0 | HLIZX | Harding Loevner Inte | PairCorr |
| 0.96 | HLIDX | Harding Loevner Inte | PairCorr |
| 0.93 | HLMVX | Harding Loevner Global | PairCorr |
| 0.77 | HLMCX | Harding Loevner Chinese | PairCorr |
Harding Loevner Market Sensitivity And Downside Risk
Harding Loevner's beta coefficient measures the volatility of Harding mutual fund compared to the systematic risk of the entire market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Harding mutual fund's returns against your selected market. In other words, Harding Loevner's beta of 0.8 provides an investor with an approximation of how much risk Harding Loevner mutual fund can potentially add to one of your existing portfolios. Harding Loevner International exhibits relatively low volatility with skewness of -0.52 and kurtosis of 1.16. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Harding Loevner's mutual fund risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Harding Loevner's mutual fund price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
3 Months Beta |Analyze Harding Loevner Inte Demand TrendCheck current 90 days Harding Loevner correlation with market (NYSE Composite)Harding Beta |
Harding standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. A typical volatile entity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.
Standard Deviation | 0.67 |
It is essential to understand the difference between upside risk (as represented by Harding Loevner's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Harding Loevner's daily returns or price. Since the actual investment returns on holding a position in harding mutual fund tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Harding Loevner.
Harding Loevner Inte Mutual Fund Volatility Analysis
Volatility refers to the frequency at which Harding Loevner fund price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Harding Loevner's price changes. Investors will then calculate the volatility of Harding Loevner's mutual fund to predict their future moves. A fund that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A mutual fund with relatively stable price changes has low volatility. A highly volatile fund is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Harding Loevner's volatility:
Historical Volatility
This type of fund volatility measures Harding Loevner's fluctuations based on previous trends. It's commonly used to predict Harding Loevner's future behavior based on its past. However, it cannot conclusively determine the future direction of the mutual fund.Implied Volatility
This type of volatility provides a positive outlook on future price fluctuations for Harding Loevner's current market price. This means that the fund will return to its initially predicted market price. This type of volatility can be derived from derivative instruments written on Harding Loevner's to be redeemed at a future date.Transformation |
The output start index for this execution was zero with a total number of output elements of sixty-one. Harding Loevner Inte Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input.
Harding Loevner Projected Return Density Against Market
Assuming the 90 days horizon Harding Loevner has a beta of 0.8023 . This usually indicates as returns on the market go up, Harding Loevner average returns are expected to increase less than the benchmark. However, during the bear market, the loss on holding Harding Loevner International will be expected to be much smaller as well.Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Harding Loevner or Harding Loevner sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Harding Loevner's price will be affected by overall mutual fund market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Harding fund's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Harding Loevner International has a negative alpha, implying that the risk taken by holding this instrument is not justified. The company is significantly underperforming the NYSE Composite. Predicted Return Density |
| Returns |
What Drives a Harding Loevner Price Volatility?
Several factors can influence a fund's market volatility:Industry
Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.Political and Economic environment
When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.The Company's Performance
Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.Harding Loevner Mutual Fund Risk Measures
Assuming the 90 days horizon the coefficient of variation of Harding Loevner is 2304.51. The daily returns are distributed with a variance of 0.45 and standard deviation of 0.67. The mean deviation of Harding Loevner International is currently at 0.49. For similar time horizon, the selected benchmark (NYSE Composite) has volatility of 0.62
α | Alpha over NYSE Composite | -0.04 | |
β | Beta against NYSE Composite | 0.80 | |
σ | Overall volatility | 0.67 | |
Ir | Information ratio | -0.08 |
Harding Loevner Mutual Fund Return Volatility
Harding Loevner historical daily return volatility represents how much of Harding Loevner fund's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The fund shows 0.6683% volatility of returns over 90 . By contrast, NYSE Composite accepts 0.6372% volatility on return distribution over the 90 days horizon. Performance |
| Timeline |
About Harding Loevner Volatility
Volatility is a rate at which the price of Harding Loevner or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Harding Loevner may increase or decrease. In other words, similar to Harding's beta indicator, it measures the risk of Harding Loevner and helps estimate the fluctuations that may happen in a short period of time. So if prices of Harding Loevner fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.The fund invests in companies based in developed markets outside the U.S. as well as in companies in emerging and frontier markets. It normally invests at least 80 percent of its net assets in common stocks, preferred stocks, rights and warrants issued by companies that are based outside the United States, securities convertible into such securities , and investment companies that invest in the types of securities in which the Portfolio would normally invest. The fund normally holds investments across at least 15 countries.
Harding Loevner's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Harding Mutual Fund over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Harding Loevner's price varies over time.
3 ways to utilize Harding Loevner's volatility to invest better
Higher Harding Loevner's fund volatility means that the price of its stock is changing rapidly and unpredictably, while lower stock volatility indicates that the price of Harding Loevner Inte fund is relatively stable. Investors and traders use stock volatility as an indicator of risk and potential reward, as stocks with higher volatility can offer the potential for more significant returns but also come with a greater risk of losses. Harding Loevner Inte fund volatility can provide helpful information for making investment decisions in the following ways:- Measuring Risk: Volatility can be used as a measure of risk, which can help you determine the potential fluctuations in the value of Harding Loevner Inte investment. A higher volatility means higher risk and potentially larger changes in value.
- Identifying Opportunities: High volatility in Harding Loevner's fund can indicate that there is potential for significant price movements, either up or down, which could present investment opportunities.
- Diversification: Understanding how the volatility of Harding Loevner's fund relates to your other investments can help you create a well-diversified portfolio of assets with varying levels of risk.
Harding Loevner Investment Opportunity
Harding Loevner International has a volatility of 0.67 and is 1.05 times more volatile than NYSE Composite. 5 percent of all equities and portfolios are less risky than Harding Loevner. You can use Harding Loevner International to enhance the returns of your portfolios. The mutual fund experiences a normal upward fluctuation. Check odds of Harding Loevner to be traded at $26.97 in 90 days.Poor diversification
The correlation between Harding Loevner International and NYA is 0.77 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner International and NYA in the same portfolio, assuming nothing else is changed.
Harding Loevner Additional Risk Indicators
The analysis of Harding Loevner's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Harding Loevner's investment and either accepting that risk or mitigating it. Along with some common measures of Harding Loevner mutual fund's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
| Risk Adjusted Performance | 0.0338 | |||
| Market Risk Adjusted Performance | 0.041 | |||
| Mean Deviation | 0.4744 | |||
| Semi Deviation | 0.6774 | |||
| Downside Deviation | 0.743 | |||
| Coefficient Of Variation | 1873.58 | |||
| Standard Deviation | 0.654 |
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential mutual funds, we recommend comparing similar funds with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.
Harding Loevner Suggested Diversification Pairs
Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Harding Loevner as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Harding Loevner's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Harding Loevner's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Harding Loevner International.
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Harding Loevner International. Also, note that the market value of any mutual fund could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Stocks Directory module to find actively traded stocks across global markets.