Correlation Between Harbor ETF and Main International
Can any of the company-specific risk be diversified away by investing in both Harbor ETF and Main International 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 Harbor ETF and Main International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor ETF Trust and Main International ETF, you can compare the effects of market volatilities on Harbor ETF and Main International 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 Harbor ETF with a short position of Main International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor ETF and Main International.
Diversification Opportunities for Harbor ETF and Main International
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harbor and Main is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF and Harbor ETF 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 Harbor ETF Trust are associated (or correlated) with Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of Harbor ETF i.e., Harbor ETF and Main International go up and down completely randomly.
Pair Corralation between Harbor ETF and Main International
Given the investment horizon of 90 days Harbor ETF is expected to generate 6.46 times less return on investment than Main International. But when comparing it to its historical volatility, Harbor ETF Trust is 1.11 times less risky than Main International. It trades about 0.01 of its potential returns per unit of risk. Main International ETF is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,979 in Main International ETF on October 25, 2024 and sell it today you would earn a total of 299.00 from holding Main International ETF or generate 15.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 5.26% |
| Values | Daily Returns |
Harbor ETF Trust vs. Main International ETF
Performance |
| Timeline |
| Harbor ETF Trust |
| Main International ETF |
Harbor ETF and Main International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor ETF and Main International
The main advantage of trading using opposite Harbor ETF and Main International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor ETF position performs unexpectedly, Main International 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 Main International will offset losses from the drop in Main International's long position.| Harbor ETF vs. Global X Funds | Harbor ETF vs. JPMorgan Active Value | Harbor ETF vs. Main International ETF | Harbor ETF vs. Global X Funds |
| Main International vs. ADTRAN Inc | Main International vs. International Business Machines | Main International vs. Integrated Ventures | Main International vs. Harmonic |
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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