Correlation Between Ssga International and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Ssga International 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 Ssga International and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ssga International Stock and Harding Loevner Institutional, you can compare the effects of market volatilities on Ssga International 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 Ssga International with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ssga International and Harding Loevner.
Diversification Opportunities for Ssga International and Harding Loevner
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ssga and Harding is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ssga International Stock and Harding Loevner Institutional in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inst and Ssga International 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 Ssga International Stock 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 Inst has no effect on the direction of Ssga International i.e., Ssga International and Harding Loevner go up and down completely randomly.
Pair Corralation between Ssga International and Harding Loevner
Assuming the 90 days horizon Ssga International Stock is expected to generate 0.9 times more return on investment than Harding Loevner. However, Ssga International Stock is 1.11 times less risky than Harding Loevner. It trades about -0.1 of its potential returns per unit of risk. Harding Loevner Institutional is currently generating about -0.19 per unit of risk. If you would invest 1,150 in Ssga International Stock on August 30, 2024 and sell it today you would lose (18.00) from holding Ssga International Stock or give up 1.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ssga International Stock vs. Harding Loevner Institutional
Performance |
| Timeline |
| Ssga International Stock |
| Harding Loevner Inst |
Ssga International and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ssga International and Harding Loevner
The main advantage of trading using opposite Ssga International and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ssga International 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.| Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Dividend Equity | Ssga International vs. Loomis Sayles Bond |
| Harding Loevner vs. Harding Loevner International | Harding Loevner vs. John Hancock Disciplined | Harding Loevner vs. Causeway Emerging Markets | Harding Loevner vs. Mid Cap Growth |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |