Correlation Between Virtus Kar and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Virtus Kar and Harding Loevner 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 Virtus Kar and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtus Kar Small Cap and Harding Loevner International, you can compare the effects of market volatilities on Virtus Kar and Harding Loevner 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 Virtus Kar with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtus Kar and Harding Loevner.
Diversification Opportunities for Virtus Kar and Harding Loevner
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Virtus and Harding is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Virtus Kar Small Cap and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte and Virtus Kar 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 Virtus Kar Small Cap are associated (or correlated) with Harding Loevner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harding Loevner Inte has no effect on the direction of Virtus Kar i.e., Virtus Kar and Harding Loevner go up and down completely randomly.
Pair Corralation between Virtus Kar and Harding Loevner
Assuming the 90 days horizon Virtus Kar Small Cap is expected to generate 1.43 times more return on investment than Harding Loevner. However, Virtus Kar is 1.43 times more volatile than Harding Loevner International. It trades about 0.14 of its potential returns per unit of risk. Harding Loevner International is currently generating about 0.0 per unit of risk. If you would invest 2,386 in Virtus Kar Small Cap on September 3, 2024 and sell it today you would earn a total of 545.00 from holding Virtus Kar Small Cap or generate 22.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Virtus Kar Small Cap vs. Harding Loevner International
Performance |
| Timeline |
| Virtus Kar Small |
| Harding Loevner Inte |
Virtus Kar and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtus Kar and Harding Loevner
The main advantage of trading using opposite Virtus Kar and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtus Kar position performs unexpectedly, Harding Loevner 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 Harding Loevner will offset losses from the drop in Harding Loevner's long position.| Virtus Kar vs. The Hartford Midcap | Virtus Kar vs. Mfs Emerging Markets | Virtus Kar vs. Wells Fargo Special | Virtus Kar vs. Washington Mutual Investors |
| Harding Loevner vs. Lazard International Strategic | Harding Loevner vs. Delaware Value Fund | Harding Loevner vs. American Beacon International | Harding Loevner vs. Hartford Schroders Emerging |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |