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
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Harbor and American is 0.85. 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 is expected to generate 2.76 times less return on investment than American Funds. In addition to that, Harbor Capital is 3.3 times more volatile than American Funds 2025. It trades about 0.01 of its total potential returns per unit of risk. American Funds 2025 is currently generating about 0.07 per unit of volatility. If you would invest 1,618 in American Funds 2025 on August 26, 2025 and sell it today you would earn a total of 24.00 from holding American Funds 2025 or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| 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. Harbor Capital Appreciation | Harbor Capital vs. Harbor Capital Appreciation | Harbor Capital vs. Parnassus Equity Incme | Harbor Capital vs. Ultra Fund C |
| American Funds vs. American Funds 2025 | American Funds vs. American Funds 2055 | American Funds vs. American Funds 2050 | American Funds vs. American Funds 2050 |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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