Correlation Between Harding Loevner and Delaware Value
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Delaware Value 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 Delaware Value into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner International and Delaware Value Fund, you can compare the effects of market volatilities on Harding Loevner and Delaware Value 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 Delaware Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Delaware Value.
Diversification Opportunities for Harding Loevner and Delaware Value
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harding and Delaware is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner International and Delaware Value Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delaware Value 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 International are associated (or correlated) with Delaware Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delaware Value has no effect on the direction of Harding Loevner i.e., Harding Loevner and Delaware Value go up and down completely randomly.
Pair Corralation between Harding Loevner and Delaware Value
Assuming the 90 days horizon Harding Loevner is expected to generate 2.21 times less return on investment than Delaware Value. In addition to that, Harding Loevner is 1.21 times more volatile than Delaware Value Fund. It trades about 0.03 of its total potential returns per unit of risk. Delaware Value Fund is currently generating about 0.09 per unit of volatility. If you would invest 1,571 in Delaware Value Fund on September 2, 2024 and sell it today you would earn a total of 347.00 from holding Delaware Value Fund or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harding Loevner International vs. Delaware Value Fund
Performance |
| Timeline |
| Harding Loevner Inte |
| Delaware Value |
Harding Loevner and Delaware Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Delaware Value
The main advantage of trading using opposite Harding Loevner and Delaware Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Delaware Value 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 Delaware Value will offset losses from the drop in Delaware Value's long position.| Harding Loevner vs. Mesirow Financial High | Harding Loevner vs. Gmo High Yield | Harding Loevner vs. Legg Mason Partners | Harding Loevner vs. Msift High Yield |
| Delaware Value vs. Optimum Small Mid Cap | Delaware Value vs. Optimum Small Mid Cap | Delaware Value vs. Ivy Apollo Multi Asset | Delaware Value vs. Optimum Fixed 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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