Correlation Between Calvert Global and Harding Loevner

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Can any of the company-specific risk be diversified away by investing in both Calvert Global 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 Calvert Global and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Calvert Global Water and Harding Loevner Global, you can compare the effects of market volatilities on Calvert Global 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 Calvert Global with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Calvert Global and Harding Loevner.

Diversification Opportunities for Calvert Global and Harding Loevner

0.64
  Correlation Coefficient

Poor diversification

The 3 months correlation between Calvert and Harding is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Calvert Global Water and Harding Loevner Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Global and Calvert Global 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 Calvert Global Water 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 Global has no effect on the direction of Calvert Global i.e., Calvert Global and Harding Loevner go up and down completely randomly.

Pair Corralation between Calvert Global and Harding Loevner

Assuming the 90 days horizon Calvert Global Water is expected to under-perform the Harding Loevner. In addition to that, Calvert Global is 1.13 times more volatile than Harding Loevner Global. It trades about -0.02 of its total potential returns per unit of risk. Harding Loevner Global is currently generating about 0.07 per unit of volatility. If you would invest  3,649  in Harding Loevner Global on August 13, 2025 and sell it today you would earn a total of  97.00  from holding Harding Loevner Global or generate 2.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Calvert Global Water  vs.  Harding Loevner Global

 Performance 
       Timeline  
Calvert Global Water 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Calvert Global Water has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong fundamental indicators, Calvert Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Harding Loevner Global 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Harding Loevner Global are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Harding Loevner is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Calvert Global and Harding Loevner Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Calvert Global and Harding Loevner

The main advantage of trading using opposite Calvert Global and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Calvert Global 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.
The idea behind Calvert Global Water and Harding Loevner Global pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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