Correlation Between Harbor ETF and Martin Currie
Can any of the company-specific risk be diversified away by investing in both Harbor ETF and Martin Currie 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 Martin Currie 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 Martin Currie Sustainable, you can compare the effects of market volatilities on Harbor ETF and Martin Currie 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 Martin Currie. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor ETF and Martin Currie.
Diversification Opportunities for Harbor ETF and Martin Currie
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harbor and Martin is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Harbor ETF Trust and Martin Currie Sustainable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Martin Currie Sustainable 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 Martin Currie. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Martin Currie Sustainable has no effect on the direction of Harbor ETF i.e., Harbor ETF and Martin Currie go up and down completely randomly.
Pair Corralation between Harbor ETF and Martin Currie
Given the investment horizon of 90 days Harbor ETF is expected to generate 2.08 times less return on investment than Martin Currie. But when comparing it to its historical volatility, Harbor ETF Trust is 1.83 times less risky than Martin Currie. It trades about 0.24 of its potential returns per unit of risk. Martin Currie Sustainable is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 1,327 in Martin Currie Sustainable on September 19, 2024 and sell it today you would earn a total of 48.50 from holding Martin Currie Sustainable or generate 3.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harbor ETF Trust vs. Martin Currie Sustainable
Performance |
| Timeline |
| Harbor ETF Trust |
| Martin Currie Sustainable |
Harbor ETF and Martin Currie Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor ETF and Martin Currie
The main advantage of trading using opposite Harbor ETF and Martin Currie positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor ETF position performs unexpectedly, Martin Currie 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 Martin Currie will offset losses from the drop in Martin Currie's long position.| Harbor ETF vs. First Trust BuyWrite | Harbor ETF vs. First Trust Emerging | Harbor ETF vs. First Trust SSI | Harbor ETF vs. First Trust Alternative |
| Martin Currie vs. WisdomTree International Quality | Martin Currie vs. WisdomTree Europe Hedged | Martin Currie vs. iShares Currency Hedged | Martin Currie vs. WisdomTree Europe Quality |
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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