Correlation Between Investec Emerging and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Investec Emerging 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 Investec Emerging and Harding Loevner into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Investec Emerging Markets and Harding Loevner Emerging, you can compare the effects of market volatilities on Investec Emerging 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 Investec Emerging with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investec Emerging and Harding Loevner.
Diversification Opportunities for Investec Emerging and Harding Loevner
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Investec and Harding is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Investec Emerging Markets 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 Investec Emerging 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 Investec Emerging Markets 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 Investec Emerging i.e., Investec Emerging and Harding Loevner go up and down completely randomly.
Pair Corralation between Investec Emerging and Harding Loevner
Assuming the 90 days horizon Investec Emerging Markets is expected to generate 1.27 times more return on investment than Harding Loevner. However, Investec Emerging is 1.27 times more volatile than Harding Loevner Emerging. It trades about 0.14 of its potential returns per unit of risk. Harding Loevner Emerging is currently generating about 0.15 per unit of risk. If you would invest 1,324 in Investec Emerging Markets on September 9, 2025 and sell it today you would earn a total of 101.00 from holding Investec Emerging Markets or generate 7.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Investec Emerging Markets vs. Harding Loevner Emerging
Performance |
| Timeline |
| Investec Emerging Markets |
| Harding Loevner Emerging |
Investec Emerging and Harding Loevner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investec Emerging and Harding Loevner
The main advantage of trading using opposite Investec Emerging and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investec Emerging 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.| Investec Emerging vs. Intal High Relative | Investec Emerging vs. Transamerica High Yield | Investec Emerging vs. T Rowe Price | Investec Emerging vs. Ab High Income |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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