Correlation Between Artisan Emerging and Harding Loevner
Can any of the company-specific risk be diversified away by investing in both Artisan 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 Artisan 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 Artisan Emerging Markets and Harding Loevner International, you can compare the effects of market volatilities on Artisan 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 Artisan Emerging with a short position of Harding Loevner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Artisan Emerging and Harding Loevner.
Diversification Opportunities for Artisan Emerging and Harding Loevner
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Artisan and Harding is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Artisan Emerging Markets and Harding Loevner International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harding Loevner Inte and Artisan 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 Artisan 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 Inte has no effect on the direction of Artisan Emerging i.e., Artisan Emerging and Harding Loevner go up and down completely randomly.
Pair Corralation between Artisan Emerging and Harding Loevner
Assuming the 90 days horizon Artisan Emerging Markets is expected to generate 0.27 times more return on investment than Harding Loevner. However, Artisan Emerging Markets is 3.72 times less risky than Harding Loevner. It trades about 0.2 of its potential returns per unit of risk. Harding Loevner International is currently generating about 0.02 per unit of risk. If you would invest 934.00 in Artisan Emerging Markets on September 5, 2024 and sell it today you would earn a total of 96.00 from holding Artisan Emerging Markets or generate 10.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.6% |
Values | Daily Returns |
Artisan Emerging Markets vs. Harding Loevner International
Performance |
Timeline |
Artisan Emerging Markets |
Harding Loevner Inte |
Artisan Emerging and Harding Loevner Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Artisan Emerging and Harding Loevner
The main advantage of trading using opposite Artisan Emerging and Harding Loevner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Artisan 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.Artisan Emerging vs. Artisan Value Income | Artisan Emerging vs. Artisan Thematic Fund | Artisan Emerging vs. Artisan Small Cap | Artisan Emerging vs. Artisan Floating Rate |
Harding Loevner vs. Harding Loevner Funds | Harding Loevner vs. Harding Loevner Emerging | Harding Loevner vs. Harding Loevner Institutional | Harding Loevner vs. Harding Loevner Global |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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