Correlation Between Harding Loevner and Investec Emerging
Can any of the company-specific risk be diversified away by investing in both Harding Loevner and Investec Emerging 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 Harding Loevner and Investec Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harding Loevner Emerging and Investec Emerging Markets, you can compare the effects of market volatilities on Harding Loevner and Investec Emerging 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 Harding Loevner with a short position of Investec Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harding Loevner and Investec Emerging.
Diversification Opportunities for Harding Loevner and Investec Emerging
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harding and Investec is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Harding Loevner Emerging and Investec Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investec Emerging Markets and Harding Loevner 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 Harding Loevner Emerging are associated (or correlated) with Investec Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investec Emerging Markets has no effect on the direction of Harding Loevner i.e., Harding Loevner and Investec Emerging go up and down completely randomly.
Pair Corralation between Harding Loevner and Investec Emerging
Assuming the 90 days horizon Harding Loevner Emerging is expected to generate 0.93 times more return on investment than Investec Emerging. However, Harding Loevner Emerging is 1.08 times less risky than Investec Emerging. It trades about 0.18 of its potential returns per unit of risk. Investec Emerging Markets is currently generating about 0.16 per unit of risk. If you would invest 3,909 in Harding Loevner Emerging on June 6, 2025 and sell it today you would earn a total of 297.00 from holding Harding Loevner Emerging or generate 7.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Harding Loevner Emerging vs. Investec Emerging Markets
Performance |
| Timeline |
| Harding Loevner Emerging |
| Investec Emerging Markets |
Harding Loevner and Investec Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harding Loevner and Investec Emerging
The main advantage of trading using opposite Harding Loevner and Investec Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harding Loevner position performs unexpectedly, Investec Emerging 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 Investec Emerging will offset losses from the drop in Investec Emerging's long position.| Harding Loevner vs. Ssga International Stock | Harding Loevner vs. Schwab E Equity | Harding Loevner vs. Driehaus Emerging Markets | Harding Loevner vs. Columbia Emerging Markets |
| Investec Emerging vs. Dws Government Money | Investec Emerging vs. Aig Government Money | Investec Emerging vs. Edward Jones Money | Investec Emerging vs. Voya Government Money |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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