Correlation Between Vanguard International and Harbor Capital
Can any of the company-specific risk be diversified away by investing in both Vanguard International and Harbor Capital 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 Vanguard International and Harbor Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard International Growth and Harbor Capital Appreciation, you can compare the effects of market volatilities on Vanguard International and Harbor Capital 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 Vanguard International with a short position of Harbor Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard International and Harbor Capital.
Diversification Opportunities for Vanguard International and Harbor Capital
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and Harbor is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard International Growth and Harbor Capital Appreciation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Capital Appre and Vanguard 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 Vanguard International Growth are associated (or correlated) with Harbor Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Capital Appre has no effect on the direction of Vanguard International i.e., Vanguard International and Harbor Capital go up and down completely randomly.
Pair Corralation between Vanguard International and Harbor Capital
Assuming the 90 days horizon Vanguard International is expected to generate 1.9 times less return on investment than Harbor Capital. But when comparing it to its historical volatility, Vanguard International Growth is 1.15 times less risky than Harbor Capital. It trades about 0.07 of its potential returns per unit of risk. Harbor Capital Appreciation is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 8,955 in Harbor Capital Appreciation on September 4, 2024 and sell it today you would earn a total of 3,159 from holding Harbor Capital Appreciation or generate 35.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Vanguard International Growth vs. Harbor Capital Appreciation
Performance |
| Timeline |
| Vanguard International |
| Harbor Capital Appre |
Vanguard International and Harbor Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard International and Harbor Capital
The main advantage of trading using opposite Vanguard International and Harbor Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard International position performs unexpectedly, Harbor Capital 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 Harbor Capital will offset losses from the drop in Harbor Capital's long position.| Vanguard International vs. Vanguard Explorer Fund | Vanguard International vs. Vanguard Windsor Ii | Vanguard International vs. Vanguard Growth Fund | Vanguard International vs. Vanguard Wellington Fund |
| Harbor Capital vs. Harbor Capital Appreciation | Harbor Capital vs. Harbor International Fund | Harbor Capital vs. Harbor Small Cap | Harbor Capital vs. Growth Fund Of |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |