Correlation Between Calvert Developed and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Calvert Developed 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 Calvert Developed and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Developed Market and Harding Loevner Funds, you can compare the effects of market volatilities on Calvert Developed 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 Calvert Developed with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Developed and Harding Loevner.
Diversification Opportunities for Calvert Developed and Harding Loevner
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Calvert and Harding is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Developed Market and Harding Loevner Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Funds and Calvert Developed 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 Calvert Developed Market 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 Funds has no effect on the direction of Calvert Developed i.e., Calvert Developed and Harding Loevner go up and down completely randomly.
Pair Corralation between Calvert Developed and Harding Loevner
Assuming the 90 days horizon Calvert Developed is expected to generate 1.1 times less return on investment than Harding Loevner. In addition to that, Calvert Developed is 1.06 times more volatile than Harding Loevner Funds. It trades about 0.04 of its total potential returns per unit of risk. Harding Loevner Funds is currently generating about 0.05 per unit of volatility. If you would invest 1,143 in Harding Loevner Funds on September 12, 2024 and sell it today you would earn a total of 50.00 from holding Harding Loevner Funds or generate 4.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Calvert Developed Market vs. Harding Loevner Funds
Performance |
| Timeline |
| Calvert Developed Market |
| Harding Loevner Funds |
Calvert Developed and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Calvert Developed and Harding Loevner
The main advantage of trading using opposite Calvert Developed and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Developed 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.| Calvert Developed vs. SCOR PK | Calvert Developed vs. Morningstar Unconstrained Allocation | Calvert Developed vs. Via Renewables | Calvert Developed vs. Bondbloxx ETF Trust |
| Harding Loevner vs. Ep Emerging Markets | Harding Loevner vs. Sp Midcap Index | Harding Loevner vs. Rbc Emerging Markets | Harding Loevner vs. Calvert Developed Market |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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