Correlation Between Harbor Diversified and Baillie Gifford
Can any of the company-specific risk be diversified away by investing in both Harbor Diversified and Baillie Gifford 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 Diversified and Baillie Gifford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Diversified International and Baillie Gifford China, you can compare the effects of market volatilities on Harbor Diversified and Baillie Gifford 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 Diversified with a short position of Baillie Gifford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Diversified and Baillie Gifford.
Diversification Opportunities for Harbor Diversified and Baillie Gifford
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harbor and Baillie is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Diversified Internation and Baillie Gifford China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baillie Gifford China and Harbor Diversified 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 Diversified International are associated (or correlated) with Baillie Gifford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baillie Gifford China has no effect on the direction of Harbor Diversified i.e., Harbor Diversified and Baillie Gifford go up and down completely randomly.
Pair Corralation between Harbor Diversified and Baillie Gifford
If you would invest 1,292 in Harbor Diversified International on September 12, 2024 and sell it today you would earn a total of 9.00 from holding Harbor Diversified International or generate 0.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Harbor Diversified Internation vs. Baillie Gifford China
Performance |
| Timeline |
| Harbor Diversified |
| Baillie Gifford China |
Harbor Diversified and Baillie Gifford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Diversified and Baillie Gifford
The main advantage of trading using opposite Harbor Diversified and Baillie Gifford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Diversified position performs unexpectedly, Baillie Gifford 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 Baillie Gifford will offset losses from the drop in Baillie Gifford's long position.| Harbor Diversified vs. Investec Emerging Markets | Harbor Diversified vs. Franklin Emerging Market | Harbor Diversified vs. Artisan Emerging Markets | Harbor Diversified vs. Transamerica Emerging Markets |
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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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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