Correlation Between Aqr Tm and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Aqr Tm 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 Aqr Tm and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aqr Tm Emerging and Harding Loevner Emerging, you can compare the effects of market volatilities on Aqr Tm 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 Aqr Tm with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aqr Tm and Harding Loevner.
Diversification Opportunities for Aqr Tm and Harding Loevner
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Aqr and Harding is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Aqr Tm Emerging and Harding Loevner Emerging in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Emerging and Aqr Tm 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 Aqr Tm Emerging 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 Emerging has no effect on the direction of Aqr Tm i.e., Aqr Tm and Harding Loevner go up and down completely randomly.
Pair Corralation between Aqr Tm and Harding Loevner
Assuming the 90 days horizon Aqr Tm Emerging is expected to under-perform the Harding Loevner. In addition to that, Aqr Tm is 1.4 times more volatile than Harding Loevner Emerging. It trades about -0.02 of its total potential returns per unit of risk. Harding Loevner Emerging is currently generating about 0.07 per unit of volatility. If you would invest 4,523 in Harding Loevner Emerging on September 5, 2025 and sell it today you would earn a total of 33.00 from holding Harding Loevner Emerging or generate 0.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aqr Tm Emerging vs. Harding Loevner Emerging
Performance |
| Timeline |
| Aqr Tm Emerging |
| Harding Loevner Emerging |
Aqr Tm and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aqr Tm and Harding Loevner
The main advantage of trading using opposite Aqr Tm and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aqr Tm 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.| Aqr Tm vs. Omni Small Cap Value | Aqr Tm vs. Eagle Small Cap | Aqr Tm vs. Gmo Small Cap | Aqr Tm vs. Glg Intl Small |
| Harding Loevner vs. Templeton Global Balanced | Harding Loevner vs. Gamco Global Opportunity | Harding Loevner vs. T Rowe Price | Harding Loevner vs. Federated Global Allocation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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