Correlation Between Harbor International and Embark Commodity
Can any of the company-specific risk be diversified away by investing in both Harbor International and Embark Commodity 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 International and Embark Commodity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor International Fund and Embark Commodity Strategy, you can compare the effects of market volatilities on Harbor International and Embark Commodity 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 International with a short position of Embark Commodity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor International and Embark Commodity.
Diversification Opportunities for Harbor International and Embark Commodity
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harbor and Embark is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Harbor International Fund and Embark Commodity Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Embark Commodity Strategy and Harbor International 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 International Fund are associated (or correlated) with Embark Commodity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Embark Commodity Strategy has no effect on the direction of Harbor International i.e., Harbor International and Embark Commodity go up and down completely randomly.
Pair Corralation between Harbor International and Embark Commodity
Assuming the 90 days horizon Harbor International Fund is expected to generate 1.09 times more return on investment than Embark Commodity. However, Harbor International is 1.09 times more volatile than Embark Commodity Strategy. It trades about 0.23 of its potential returns per unit of risk. Embark Commodity Strategy is currently generating about 0.25 per unit of risk. If you would invest 4,420 in Harbor International Fund on November 7, 2024 and sell it today you would earn a total of 190.00 from holding Harbor International Fund or generate 4.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor International Fund vs. Embark Commodity Strategy
Performance |
| Timeline |
| Harbor International |
| Embark Commodity Strategy |
Harbor International and Embark Commodity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor International and Embark Commodity
The main advantage of trading using opposite Harbor International and Embark Commodity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor International position performs unexpectedly, Embark Commodity 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 Embark Commodity will offset losses from the drop in Embark Commodity's long position.| Harbor International vs. Harbor Vertible Securities | Harbor International vs. Harbor Diversified International | Harbor International vs. Harbor International Small | Harbor International vs. Harbor Mid Cap |
| Embark Commodity vs. Eip Growth And | Embark Commodity vs. Rational Defensive Growth | Embark Commodity vs. T Rowe Price | Embark Commodity vs. Needham Aggressive Growth |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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