Correlation Between Harding Loevner and Amg Renaissance
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Amg Renaissance 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 Amg Renaissance 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 Amg Renaissance Large, you can compare the effects of market volatilities on Harding Loevner and Amg Renaissance 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 Amg Renaissance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Amg Renaissance.
Diversification Opportunities for Harding Loevner and Amg Renaissance
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harding and Amg is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner International and Amg Renaissance Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg Renaissance Large 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 Amg Renaissance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg Renaissance Large has no effect on the direction of Harding Loevner i.e., Harding Loevner and Amg Renaissance go up and down completely randomly.
Pair Corralation between Harding Loevner and Amg Renaissance
Assuming the 90 days horizon Harding Loevner International is expected to under-perform the Amg Renaissance. But the mutual fund apears to be less risky and, when comparing its historical volatility, Harding Loevner International is 1.18 times less risky than Amg Renaissance. The mutual fund trades about -0.21 of its potential returns per unit of risk. The Amg Renaissance Large is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,971 in Amg Renaissance Large on August 30, 2024 and sell it today you would earn a total of 131.00 from holding Amg Renaissance Large or generate 6.65% 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. Amg Renaissance Large
Performance |
| Timeline |
| Harding Loevner Inte |
| Amg Renaissance Large |
Harding Loevner and Amg Renaissance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Amg Renaissance
The main advantage of trading using opposite Harding Loevner and Amg Renaissance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Amg Renaissance 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 Amg Renaissance will offset losses from the drop in Amg Renaissance's long position.| Harding Loevner vs. Lazard International Strategic | Harding Loevner vs. Delaware Value Fund | Harding Loevner vs. American Beacon International | Harding Loevner vs. Hartford Schroders Emerging |
| Amg Renaissance vs. Amg Southernsun Equity | Amg Renaissance vs. Amg Southernsun Equity | Amg Renaissance vs. Amg Fq Long Short | Amg Renaissance vs. Amg Southernsun Small |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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