Correlation Between Harding Loevner and Hartford Municipal
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Hartford Municipal 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 Hartford Municipal 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 The Hartford Municipal, you can compare the effects of market volatilities on Harding Loevner and Hartford Municipal 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 Hartford Municipal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Hartford Municipal.
Diversification Opportunities for Harding Loevner and Hartford Municipal
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Harding and Hartford is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner International and The Hartford Municipal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Hartford Municipal 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 Hartford Municipal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Hartford Municipal has no effect on the direction of Harding Loevner i.e., Harding Loevner and Hartford Municipal go up and down completely randomly.
Pair Corralation between Harding Loevner and Hartford Municipal
Assuming the 90 days horizon Harding Loevner International is expected to under-perform the Hartford Municipal. In addition to that, Harding Loevner is 3.3 times more volatile than The Hartford Municipal. It trades about -0.1 of its total potential returns per unit of risk. The Hartford Municipal is currently generating about 0.18 per unit of volatility. If you would invest 834.00 in The Hartford Municipal on September 1, 2024 and sell it today you would earn a total of 8.00 from holding The Hartford Municipal or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harding Loevner International vs. The Hartford Municipal
Performance |
| Timeline |
| Harding Loevner Inte |
| The Hartford Municipal |
Harding Loevner and Hartford Municipal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Hartford Municipal
The main advantage of trading using opposite Harding Loevner and Hartford Municipal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Hartford Municipal 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 Hartford Municipal will offset losses from the drop in Hartford Municipal's long position.| Harding Loevner vs. Harding Loevner Emerging | Harding Loevner vs. Harding Loevner Global | Harding Loevner vs. Harding Loevner Frontier | Harding Loevner vs. Highland Floating Rate |
| Hartford Municipal vs. Great West Real Estate | Hartford Municipal vs. Deutsche Real Estate | Hartford Municipal vs. Msif Real Estate | Hartford Municipal vs. Simt Real Estate |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |