Correlation Between Harbor Dividend and Harbor ETF

Can any of the company-specific risk be diversified away by investing in both Harbor Dividend and Harbor ETF 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 Dividend and Harbor ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Harbor Dividend Growth and Harbor ETF Trust, you can compare the effects of market volatilities on Harbor Dividend and Harbor ETF 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 Dividend with a short position of Harbor ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harbor Dividend and Harbor ETF.

Diversification Opportunities for Harbor Dividend and Harbor ETF

0.0

Correlation Coefficient

Harbor Dividend  Harbor ETF

Pay attention - limited upside

The 3 months correlation between Harbor and Harbor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Harbor Dividend Growth and Harbor ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor ETF Trust and Harbor Dividend 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 Dividend Growth are associated (or correlated) with Harbor ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor ETF Trust has no effect on the direction of Harbor Dividend i.e., Harbor Dividend and Harbor ETF go up and down completely randomly.

Pair Corralation between Harbor Dividend and Harbor ETF

If you would invest  1,486  in Harbor Dividend Growth on September 12, 2024 and sell it today you would earn a total of  54.00  from holding Harbor Dividend Growth or generate 3.63% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Harbor Dividend Growth  vs.  Harbor ETF Trust

Harbor Dividend Growth

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Harbor Dividend Growth are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable forward indicators, Harbor Dividend is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Harbor ETF Trust

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Harbor ETF Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Harbor ETF is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Harbor Dividend and Harbor ETF

The main advantage of trading using opposite Harbor Dividend and Harbor ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harbor Dividend position performs unexpectedly, Harbor ETF 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 Harbor ETF will offset losses from the drop in Harbor ETF's long position.

The idea behind Harbor Dividend Growth and Harbor ETF Trust 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.

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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.