Correlation Between Harding Loevner and Barloworld
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Barloworld 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 Barloworld into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner Funds and Barloworld Ltd ADR, you can compare the effects of market volatilities on Harding Loevner and Barloworld 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 Barloworld. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Barloworld.
Diversification Opportunities for Harding Loevner and Barloworld
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Harding and Barloworld is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Funds and Barloworld Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barloworld ADR 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 Funds are associated (or correlated) with Barloworld. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barloworld ADR has no effect on the direction of Harding Loevner i.e., Harding Loevner and Barloworld go up and down completely randomly.
Pair Corralation between Harding Loevner and Barloworld
Assuming the 90 days horizon Harding Loevner Funds is expected to under-perform the Barloworld. But the mutual fund apears to be less risky and, when comparing its historical volatility, Harding Loevner Funds is 9.61 times less risky than Barloworld. The mutual fund trades about -0.18 of its potential returns per unit of risk. The Barloworld Ltd ADR is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 403.00 in Barloworld Ltd ADR on September 4, 2024 and sell it today you would earn a total of 20.00 from holding Barloworld Ltd ADR or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Harding Loevner Funds vs. Barloworld Ltd ADR
Performance |
| Timeline |
| Harding Loevner Funds |
| Barloworld ADR |
Harding Loevner and Barloworld Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Barloworld
The main advantage of trading using opposite Harding Loevner and Barloworld positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Barloworld 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 Barloworld will offset losses from the drop in Barloworld's long position.| Harding Loevner vs. Rbb Fund | Harding Loevner vs. Volumetric Fund Volumetric | Harding Loevner vs. T Rowe Price | Harding Loevner vs. Fm Investments Large |
| Barloworld vs. Hertz Global Holdings | Barloworld vs. United Rentals | Barloworld vs. Ryder System | Barloworld vs. Herc Holdings |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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