Correlation Between Alger Concentrated and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Alger Concentrated 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 Alger Concentrated and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alger Concentrated Equity and Harding Loevner Emerging, you can compare the effects of market volatilities on Alger Concentrated 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 Alger Concentrated with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alger Concentrated and Harding Loevner.
Diversification Opportunities for Alger Concentrated and Harding Loevner
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alger and Harding is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Alger Concentrated Equity and Harding Loevner Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Emerging and Alger Concentrated 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 Alger Concentrated Equity 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 Emerging has no effect on the direction of Alger Concentrated i.e., Alger Concentrated and Harding Loevner go up and down completely randomly.
Pair Corralation between Alger Concentrated and Harding Loevner
Assuming the 90 days horizon Alger Concentrated Equity is expected to generate 1.42 times more return on investment than Harding Loevner. However, Alger Concentrated is 1.42 times more volatile than Harding Loevner Emerging. It trades about 0.1 of its potential returns per unit of risk. Harding Loevner Emerging is currently generating about -0.02 per unit of risk. If you would invest 1,018 in Alger Concentrated Equity on November 2, 2024 and sell it today you would earn a total of 315.00 from holding Alger Concentrated Equity or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 41.7% |
| Values | Daily Returns |
Alger Concentrated Equity vs. Harding Loevner Emerging
Performance |
| Timeline |
| Alger Concentrated Equity |
| Harding Loevner Emerging |
Alger Concentrated and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alger Concentrated and Harding Loevner
The main advantage of trading using opposite Alger Concentrated and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alger Concentrated 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.| Alger Concentrated vs. Pace High Yield | Alger Concentrated vs. Needham Aggressive Growth | Alger Concentrated vs. Siit High Yield | Alger Concentrated vs. One Choice Portfolio |
| Harding Loevner vs. Ssga International Stock | Harding Loevner vs. Schwab E Equity | Harding Loevner vs. Driehaus Emerging Markets | Harding Loevner vs. Columbia Emerging Markets |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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