Correlation Between Harbor ETF and Vanguard Small
Can any of the company-specific risk be diversified away by investing in both Harbor ETF and Vanguard Small 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 Harbor ETF and Vanguard Small into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor ETF Trust and Vanguard Small Cap Growth, you can compare the effects of market volatilities on Harbor ETF and Vanguard Small 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 Harbor ETF with a short position of Vanguard Small. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor ETF and Vanguard Small.
Diversification Opportunities for Harbor ETF and Vanguard Small
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Harbor and Vanguard is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust and Vanguard Small Cap Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Small Cap and Harbor ETF 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 Harbor ETF Trust are associated (or correlated) with Vanguard Small. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Small Cap has no effect on the direction of Harbor ETF i.e., Harbor ETF and Vanguard Small go up and down completely randomly.
Pair Corralation between Harbor ETF and Vanguard Small
Given the investment horizon of 90 days Harbor ETF Trust is expected to generate 0.57 times more return on investment than Vanguard Small. However, Harbor ETF Trust is 1.75 times less risky than Vanguard Small. It trades about 0.16 of its potential returns per unit of risk. Vanguard Small Cap Growth is currently generating about 0.08 per unit of risk. If you would invest 2,013 in Harbor ETF Trust on September 12, 2024 and sell it today you would earn a total of 96.00 from holding Harbor ETF Trust or generate 4.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 12.99% |
| Values | Daily Returns |
Harbor ETF Trust vs. Vanguard Small Cap Growth
Performance |
| Timeline |
| Harbor ETF Trust |
| Vanguard Small Cap |
Harbor ETF and Vanguard Small Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor ETF and Vanguard Small
The main advantage of trading using opposite Harbor ETF and Vanguard Small positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor ETF position performs unexpectedly, Vanguard Small 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 Vanguard Small will offset losses from the drop in Vanguard Small's long position.| Harbor ETF vs. FT Vest Equity | Harbor ETF vs. Northern Lights | Harbor ETF vs. Dimensional International High | Harbor ETF vs. JPMorgan Fundamental Data |
| Vanguard Small vs. Vanguard Mid Cap Growth | Vanguard Small vs. Vanguard Small Cap Value | Vanguard Small vs. Vanguard Mid Cap Value | Vanguard Small vs. Vanguard Growth Index |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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