Correlation Between Harding Loevner and Ssga International
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Ssga 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 Harding Loevner and Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner Emerging and Ssga International Stock, you can compare the effects of market volatilities on Harding Loevner and Ssga 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 Harding Loevner with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Ssga International.
Diversification Opportunities for Harding Loevner and Ssga International
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harding and Ssga is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Emerging and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock and Harding Loevner 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 Harding Loevner Emerging are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Harding Loevner i.e., Harding Loevner and Ssga International go up and down completely randomly.
Pair Corralation between Harding Loevner and Ssga International
Assuming the 90 days horizon Harding Loevner Emerging is expected to under-perform the Ssga International. In addition to that, Harding Loevner is 1.21 times more volatile than Ssga International Stock. It trades about 0.0 of its total potential returns per unit of risk. Ssga International Stock is currently generating about 0.34 per unit of volatility. If you would invest 1,158 in Ssga International Stock on December 4, 2024 and sell it today you would earn a total of 55.00 from holding Ssga International Stock or generate 4.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harding Loevner Emerging vs. Ssga International Stock
Performance |
| Timeline |
| Harding Loevner Emerging |
| Ssga International Stock |
Harding Loevner and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Ssga International
The main advantage of trading using opposite Harding Loevner and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Ssga 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 Ssga International will offset losses from the drop in Ssga International's long position.| Harding Loevner vs. Ssga International Stock | Harding Loevner vs. Schwab E Equity | Harding Loevner vs. Driehaus Emerging Markets | Harding Loevner vs. Columbia Emerging Markets |
| Ssga International vs. Mfs Diversified Income | Ssga International vs. Manning Napier Diversified | Ssga International vs. Massmutual Premier Diversified | Ssga International vs. Guidepath Conservative Income |
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.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |