Correlation Between Guggenheim Total and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Guggenheim Total 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 Guggenheim Total and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Total Return and Harding Loevner International, you can compare the effects of market volatilities on Guggenheim Total 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 Guggenheim Total with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Total and Harding Loevner.
Diversification Opportunities for Guggenheim Total and Harding Loevner
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guggenheim and Harding is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Total Return and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte and Guggenheim Total 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 Guggenheim Total Return 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 Inte has no effect on the direction of Guggenheim Total i.e., Guggenheim Total and Harding Loevner go up and down completely randomly.
Pair Corralation between Guggenheim Total and Harding Loevner
Assuming the 90 days horizon Guggenheim Total Return is expected to generate 0.37 times more return on investment than Harding Loevner. However, Guggenheim Total Return is 2.7 times less risky than Harding Loevner. It trades about 0.11 of its potential returns per unit of risk. Harding Loevner International is currently generating about 0.01 per unit of risk. If you would invest 2,285 in Guggenheim Total Return on September 1, 2024 and sell it today you would earn a total of 99.00 from holding Guggenheim Total Return or generate 4.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Total Return vs. Harding Loevner International
Performance |
| Timeline |
| Guggenheim Total Return |
| Harding Loevner Inte |
Guggenheim Total and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Total and Harding Loevner
The main advantage of trading using opposite Guggenheim Total and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Total 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.| Guggenheim Total vs. Guggenheim Macro Opportunities | Guggenheim Total vs. Pimco Incme Fund | Guggenheim Total vs. Guggenheim Floating Rate | Guggenheim Total vs. Guggenheim Limited Duration |
| Harding Loevner vs. Lazard International Strategic | Harding Loevner vs. Delaware Value Fund | Harding Loevner vs. American Beacon International | Harding Loevner vs. Hartford Schroders Emerging |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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