Correlation Between Aqr Tm and Harding Loevner

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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 Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Aqr Tm Emerging  vs.  Harding Loevner Emerging

 Performance 
       Timeline  
Aqr Tm Emerging 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Aqr Tm Emerging are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Aqr Tm may actually be approaching a critical reversion point that can send shares even higher in January 2026.
Harding Loevner Emerging 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Harding Loevner Emerging are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak primary indicators, Harding Loevner may actually be approaching a critical reversion point that can send shares even higher in January 2026.

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.
The idea behind Aqr Tm Emerging and Harding Loevner Emerging pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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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