Correlation Between Harding Loevner and Fidelity Advisorâ®
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Fidelity Advisorâ® 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 Fidelity Advisorâ® into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner Global and Fidelity Advisor Sustainable, you can compare the effects of market volatilities on Harding Loevner and Fidelity Advisorâ® 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 Fidelity Advisorâ®. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Fidelity Advisorâ®.
Diversification Opportunities for Harding Loevner and Fidelity Advisorâ®
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harding and Fidelity is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Global and Fidelity Advisor Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advisor Sus 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 Global are associated (or correlated) with Fidelity Advisorâ®. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advisor Sus has no effect on the direction of Harding Loevner i.e., Harding Loevner and Fidelity Advisorâ® go up and down completely randomly.
Pair Corralation between Harding Loevner and Fidelity Advisorâ®
Assuming the 90 days horizon Harding Loevner Global is expected to generate 1.14 times more return on investment than Fidelity Advisorâ®. However, Harding Loevner is 1.14 times more volatile than Fidelity Advisor Sustainable. It trades about -0.14 of its potential returns per unit of risk. Fidelity Advisor Sustainable is currently generating about -0.27 per unit of risk. If you would invest 3,502 in Harding Loevner Global on October 11, 2024 and sell it today you would lose (91.00) from holding Harding Loevner Global or give up 2.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harding Loevner Global vs. Fidelity Advisor Sustainable
Performance |
| Timeline |
| Harding Loevner Global |
| Fidelity Advisor Sus |
Harding Loevner and Fidelity Advisorâ® Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Fidelity Advisorâ®
The main advantage of trading using opposite Harding Loevner and Fidelity Advisorâ® positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Fidelity Advisorâ® 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 Fidelity Advisorâ® will offset losses from the drop in Fidelity Advisorâ®'s long position.| Harding Loevner vs. Madison Diversified Income | Harding Loevner vs. Voya Solution Conservative | Harding Loevner vs. Conservative Balanced Allocation | Harding Loevner vs. Huber Capital Diversified |
| Fidelity Advisorâ® vs. Wisdomtree Siegel Global | Fidelity Advisorâ® vs. Barings Global Floating | Fidelity Advisorâ® vs. Harding Loevner Global | Fidelity Advisorâ® vs. Aqr Global Macro |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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