Correlation Between Harbor Diversified and Emerging Markets
Can any of the company-specific risk be diversified away by investing in both Harbor Diversified and Emerging Markets 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 Diversified and Emerging Markets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harbor Diversified International and Emerging Markets Portfolio, you can compare the effects of market volatilities on Harbor Diversified and Emerging Markets 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 Diversified with a short position of Emerging Markets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Diversified and Emerging Markets.
Diversification Opportunities for Harbor Diversified and Emerging Markets
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Harbor and Emerging is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Diversified Internation and Emerging Markets Portfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emerging Markets Por and Harbor Diversified 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 Diversified International are associated (or correlated) with Emerging Markets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emerging Markets Por has no effect on the direction of Harbor Diversified i.e., Harbor Diversified and Emerging Markets go up and down completely randomly.
Pair Corralation between Harbor Diversified and Emerging Markets
Assuming the 90 days horizon Harbor Diversified is expected to generate 1.01 times less return on investment than Emerging Markets. But when comparing it to its historical volatility, Harbor Diversified International is 1.3 times less risky than Emerging Markets. It trades about 0.32 of its potential returns per unit of risk. Emerging Markets Portfolio is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 2,184 in Emerging Markets Portfolio on April 2, 2025 and sell it today you would earn a total of 176.00 from holding Emerging Markets Portfolio or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 97.56% |
| Values | Daily Returns |
Harbor Diversified Internation vs. Emerging Markets Portfolio
Performance |
| Timeline |
| Harbor Diversified |
| Emerging Markets Por |
Harbor Diversified and Emerging Markets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harbor Diversified and Emerging Markets
The main advantage of trading using opposite Harbor Diversified and Emerging Markets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Diversified position performs unexpectedly, Emerging Markets 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 Emerging Markets will offset losses from the drop in Emerging Markets' long position.| Harbor Diversified vs. Fidelity Real Estate | Harbor Diversified vs. Amg Managers Centersquare | Harbor Diversified vs. Simt Real Estate | Harbor Diversified vs. Short Real Estate |
| Emerging Markets vs. Fidelity Advisor Gold | Emerging Markets vs. James Balanced Golden | Emerging Markets vs. World Precious Minerals | Emerging Markets vs. First Eagle Gold |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |