Correlation Between Harbor Strategic and Pgim High
Can any of the company-specific risk be diversified away by investing in both Harbor Strategic and Pgim High 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 Strategic and Pgim High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Strategic Growth and Pgim High Yield, you can compare the effects of market volatilities on Harbor Strategic and Pgim High 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 Strategic with a short position of Pgim High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Strategic and Pgim High.
Diversification Opportunities for Harbor Strategic and Pgim High
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbor and Pgim is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Strategic Growth and Pgim High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pgim High Yield and Harbor Strategic 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 Strategic Growth are associated (or correlated) with Pgim High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pgim High Yield has no effect on the direction of Harbor Strategic i.e., Harbor Strategic and Pgim High go up and down completely randomly.
Pair Corralation between Harbor Strategic and Pgim High
Assuming the 90 days horizon Harbor Strategic Growth is expected to generate 3.38 times more return on investment than Pgim High. However, Harbor Strategic is 3.38 times more volatile than Pgim High Yield. It trades about 0.05 of its potential returns per unit of risk. Pgim High Yield is currently generating about 0.12 per unit of risk. If you would invest 2,006 in Harbor Strategic Growth on September 12, 2024 and sell it today you would earn a total of 535.00 from holding Harbor Strategic Growth or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Harbor Strategic Growth vs. Pgim High Yield
Performance |
| Timeline |
| Harbor Strategic Growth |
| Pgim High Yield |
Harbor Strategic and Pgim High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Strategic and Pgim High
The main advantage of trading using opposite Harbor Strategic and Pgim High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Strategic position performs unexpectedly, Pgim High 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 Pgim High will offset losses from the drop in Pgim High's long position.| Harbor Strategic vs. T Rowe Price | Harbor Strategic vs. The National Tax Free | Harbor Strategic vs. Counterpoint Tactical Municipal | Harbor Strategic vs. Old Westbury Municipal |
| Pgim High vs. Calamos Dynamic Convertible | Pgim High vs. Rationalpier 88 Convertible | Pgim High vs. Advent Claymore Convertible | Pgim High vs. Absolute Convertible Arbitrage |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |