Correlation Between EA Series and Harbor ETF
Can any of the company-specific risk be diversified away by investing in both EA Series and Harbor ETF 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 EA Series and Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EA Series Trust and Harbor ETF Trust, you can compare the effects of market volatilities on EA Series and Harbor ETF 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 EA Series with a short position of Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of EA Series and Harbor ETF.
Diversification Opportunities for EA Series and Harbor ETF
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DRAI and Harbor is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding EA Series Trust and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust and EA Series 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 EA Series Trust are associated (or correlated) with Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of EA Series i.e., EA Series and Harbor ETF go up and down completely randomly.
Pair Corralation between EA Series and Harbor ETF
Given the investment horizon of 90 days EA Series Trust is expected to under-perform the Harbor ETF. In addition to that, EA Series is 1.69 times more volatile than Harbor ETF Trust. It trades about -0.05 of its total potential returns per unit of risk. Harbor ETF Trust is currently generating about 0.11 per unit of volatility. If you would invest 1,962 in Harbor ETF Trust on August 27, 2024 and sell it today you would earn a total of 404.00 from holding Harbor ETF Trust or generate 20.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 39.84% |
| Values | Daily Returns |
EA Series Trust vs. Harbor ETF Trust
Performance |
| Timeline |
| EA Series Trust |
| Harbor ETF Trust |
EA Series and Harbor ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EA Series and Harbor ETF
The main advantage of trading using opposite EA Series and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EA Series position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.| EA Series vs. Tidal Trust II | EA Series vs. ProShares VIX Mid Term | EA Series vs. ProShares VIX Short Term | EA Series vs. LHA Market State |
| Harbor ETF vs. Tidal Trust II | Harbor ETF vs. EA Series Trust | Harbor ETF vs. ProShares VIX Mid Term | Harbor ETF vs. ProShares VIX Short Term |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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