Correlation Between Amg Timessquare and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Amg Timessquare 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 Amg Timessquare and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amg Timessquare International and Harding Loevner International, you can compare the effects of market volatilities on Amg Timessquare 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 Amg Timessquare with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amg Timessquare and Harding Loevner.
Diversification Opportunities for Amg Timessquare and Harding Loevner
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amg and Harding is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Amg Timessquare International 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 Amg Timessquare 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 Amg Timessquare International 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 Amg Timessquare i.e., Amg Timessquare and Harding Loevner go up and down completely randomly.
Pair Corralation between Amg Timessquare and Harding Loevner
Assuming the 90 days horizon Amg Timessquare International is expected to generate 0.77 times more return on investment than Harding Loevner. However, Amg Timessquare International is 1.3 times less risky than Harding Loevner. It trades about 0.0 of its potential returns per unit of risk. Harding Loevner International is currently generating about -0.08 per unit of risk. If you would invest 1,497 in Amg Timessquare International on September 1, 2024 and sell it today you would lose (1.00) from holding Amg Timessquare International or give up 0.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amg Timessquare International vs. Harding Loevner International
Performance |
| Timeline |
| Amg Timessquare Inte |
| Harding Loevner Inte |
Amg Timessquare and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amg Timessquare and Harding Loevner
The main advantage of trading using opposite Amg Timessquare and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amg Timessquare 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.| Amg Timessquare vs. Baron Emerging Markets | Amg Timessquare vs. Parnassus Mid Cap | Amg Timessquare vs. Fidelity International Growth | Amg Timessquare vs. Df Dent Midcap |
| Harding Loevner vs. Nicholas Ii Inc | Harding Loevner vs. Harding Loevner Emerging | Harding Loevner vs. Touchstone Sands Capital | Harding Loevner vs. Harding Loevner Global |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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