Correlation Between Harbor Capital and American Funds
Can any of the company-specific risk be diversified away by investing in both Harbor Capital and American Funds 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 Harbor Capital and American Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Capital Appreciation and American Funds 2025, you can compare the effects of market volatilities on Harbor Capital and American Funds 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 Harbor Capital with a short position of American Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Capital and American Funds.
Diversification Opportunities for Harbor Capital and American Funds
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Harbor and American is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Capital Appreciation and American Funds 2025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Funds 2025 and Harbor Capital 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 Harbor Capital Appreciation are associated (or correlated) with American Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Funds 2025 has no effect on the direction of Harbor Capital i.e., Harbor Capital and American Funds go up and down completely randomly.
Pair Corralation between Harbor Capital and American Funds
Assuming the 90 days horizon Harbor Capital Appreciation is expected to generate 3.22 times more return on investment than American Funds. However, Harbor Capital is 3.22 times more volatile than American Funds 2025. It trades about 0.06 of its potential returns per unit of risk. American Funds 2025 is currently generating about 0.1 per unit of risk. If you would invest 12,654 in Harbor Capital Appreciation on September 7, 2025 and sell it today you would earn a total of 482.00 from holding Harbor Capital Appreciation or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
Harbor Capital Appreciation vs. American Funds 2025
Performance |
| Timeline |
| Harbor Capital Appre |
| American Funds 2025 |
Harbor Capital and American Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Capital and American Funds
The main advantage of trading using opposite Harbor Capital and American Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Capital position performs unexpectedly, American Funds 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 American Funds will offset losses from the drop in American Funds' long position.| Harbor Capital vs. Prudential Health Sciences | Harbor Capital vs. Health Care Fund | Harbor Capital vs. Blackrock Health Sciences | Harbor Capital vs. Alger Health Sciences |
| American Funds vs. The Hartford Global | American Funds vs. Ms Global Fixed | American Funds vs. Barings Global Floating | American Funds vs. Dodge Global Stock |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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